Indian Oil Corp Seeks 1st Diesel Imports in 8 Months.

Indian Oil Corp is seeking imports of diesel for the first time in 8 months, ahead of expected cold weather in northern India.

Industry sources said that the state owned refiner is seeking 60,000 tonnes of 320 ppm sulphur diesel for delivery into either Chennai, Vizag or Paradip over January 17 to 19 through a spot tender.

The tender closes on December 22 and is valid until December 23. IOC last imported about 350,000 tonnes of gasoil in April.

The reason for the imports are not clear but traders said that it could likely be in anticipation of a pick up in demand in January as the weather in north India gets colder, which in turn could boost demand for diesel for power generation for heating purposes.

An India based trader said that it could also be in anticipation of increased demand for transport fuel during elections next year, when several India states go to the polls.

A second trader said that it could likely be due to product imbalances in eastern India. He added that "This happens occasionally when there are unexpected product shortages in the east and refiners enter spot market to correct the imbalance.”

Source : steelguru.com