Published in Downstream

Are your crude purchase strategies smart enough to take advantage of the dipping prices?

Friday, 29 April 2016 09:53 Written by 
Starting mid-2014, refiners world-wide have seen a constant dip in crude oil prices owing to Saudi Arabia’s consistent efforts to knock out the stable US Shale oil production, lackluster demand growth from weakened economies in China, Japan and Europe and the much awaited interest rate hike by the US federal reserve bank. So, what should be the top strategies of refiners who are net importers of crude oil to squeeze the best out of the currentmarket conditions?
Following think-points can provide a starting point to enhance your crude purchase strategies:
  • Are you striking a right balance between term contracts and spot purchase owing to the fact that supply may not be an area of concern in the near future as reportedby leading energy intelligence firms
  • Buying cheaper crudes is perfect but is your refinery configuration geared up for the possible shift in product pattern, operational challenges, increased refinery emissions, etc.
  • Is your refinery equipped with the desired cargo receiving facilities at the dock and dedicated storage facilities in the refinery to process the purchased opportunity crudes from a logistics stand-point
  • How much leeway is still available for your existing crude basket to accommodate a cheaper opportunistic crude without having any majorimpact on the acceptable ‘S’, API and contaminant criteria of the refinery’s staple diet
  • Do you take the advantageof blending opportunistic crudes from multiple sources with varying qualities to produce look-alike grades of staple crudestobest suit your refinery configuration.
Please consult our experts to get more insights on critical areas to be considered for crude selection and blending.
Last modified on Friday, 12 October 2018 10:13
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