Restricted avails due to a dearth of arbitrage cargoes has pushed up the premiums realized by India's Oil & Natural Gas Corp (ONGC) and Reliance Industries.
ONGC has realized a premium of US$27/ton on a 35000 ton parcel by tender for April 1-2 loading from Mumbai to Itochu to Middle East quotes on FOB basis. This was higher than a previous cargo sold by ONGC from the same port to Total at a premium of about US$20/ton, FOB.
Reliance Industries has sold a 50,000-55,000 ton parcel for late March loading to Vitol at similar premium as ONGC to Middle East quotes, FOB; higher than a previous cargo for loading from Sikka at a premium of around mid-$20/ton.
Overall supplies have been tighter due to stronger demand against a lack of Western barrels streaming in.