Pakistan to import first-ever US crude after trade deal, to purchase oil from Cnergyico: Report
The West Texas Intermediate light crude cargo will be loaded from Houston this month and is expected to arrive in Karachi in the second half of October, Qureshi said.
"This is a test spot cargo under our umbrella term agreement with Vitol. If it is commercially viable and available, we could import at least one cargo per month," he said, adding that the shipment was not meant for resale.
The deal follows months of multiple negotiations which first began in April, he said, after U.S. President Donald Trump threatened to impose 29% tariffs on imports from Pakistan.
Qureshi said Pakistan's finance and petroleum ministries encouraged local refineries to explore U.S. crude imports after the April tariff announcement.
Vitol did not immediately respond to a request for comment sent outside of office hours.
On Thursday, Pakistan hailed a trade deal struck with the U.S., its top export market. Pakistan said the agreement would lead to lower tariffs and increased investment, without specifying the level of duties to be levied on Pakistani shipments.
A key China ally, Pakistan has been warming up to Trump after he threatened tariffs. It has credited U.S. diplomatic intervention for ending recent hostilities with neighbouring India and nominated Trump for the Nobel peace prize.
Oil is Pakistan's biggest import item and its shipments were valued at $11.3 billion in the year ended June 30, 2025, accounting for nearly a fifth of the country's total import bill.
The import deal will help Pakistan diversify its crude sourcing and reduce reliance on Middle Eastern suppliers, who account for nearly all of its oil imports.
"Gross refining margin is on par with gulf grades, and no blending or refinery tweaks are required," Qureshi said.
Cnergyico can process 156,000 barrels of crude per day and operates the country's only single-point mooring terminal near Karachi, enabling it to handle large tankers unlike other refiners in Pakistan.
The company plans to install a second offshore terminal to allow larger or more frequent shipments, and upgrade its refinery over the next five to six years, Qureshi said.
The refiner, which has been operating at an average refinery run rate of 30-35% due to tepid local demand, is betting on growth in demand for oil products.
"We expect run rates to rise as domestic demand strengthens and local production is prioritised over imported fuels," Qureshi said.
Trump said on Wednesday the U.S. would also cooperate with Pakistan to develop the South Asian country's "massive oil reserves", without providing further details.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
4 minutes ago
- First Post
OPEC+ to hike oil output again in September amid Trump push to cut Russian imports
OPEC+ agreed on Sunday to raise oil production by 547,000 barrels per day for September, the latest in a series of accelerated output hikes to regain market share, as concerns mount over potential supply disruptions linked to Russia. read more A brief virtual meeting among eight OPEC+ countries on Sunday ended with an agreement to sharply increase oil production in September, even as the United States steps up pressure on India to curb imports of Russian oil, part of Washington's broader strategy to push Moscow towards peace talks with Ukraine. President Donald Trump has said he wants progress by August 8. In its post-meeting statement, OPEC+ pointed to strong global economic indicators and low inventory levels as key drivers behind its decision. Crude prices have remained robust, with Brent futures closing near $70 per barrel on Friday—up from a low of about $58 earlier this year, buoyed in part by seasonal demand. STORY CONTINUES BELOW THIS AD 'Given fairly strong oil prices at around $70, it does give OPEC+ some confidence about market fundamentals,' said Amrita Sen, co-founder of Energy Aspects, adding that the market structure was also indicating tight stocks. The eight participating nations will raise their collective output by 547,000 barrels per day in September, completing the accelerated reversal of a 2.2 million-bpd supply reduction imposed in 2023. The increase also accounts for a phased-in boost from the United Arab Emirates. OPEC+ sources told Reuters that the same group would reconvene on September 7, when they may evaluate whether to reintroduce another layer of cuts amounting to roughly 1.65 million bpd, measures that are officially extended through the end of next year. The broader OPEC+ coalition, comprising 10 non-OPEC producers including Russia and Kazakhstan, has historically curbed production to stabilise prices. However, the alliance pivoted this year, aiming to reclaim lost market share, a move aligned with calls from Trump urging the group to increase supply. The phased hikes began in April with a 138,000-bpd boost, followed by steeper increments of 411,000 bpd over the next three months, 548,000 bpd in August, and now 547,000 bpd for September. 'So far the market has been able to absorb very well those additional barrels also due to stockpiliing activity in China,' said Giovanni Staunovo of UBS. 'All eyes will now shift on the Trump decision on Russia this Friday." As well as the voluntary cut of about 1.65 million bpd from the eight members, OPEC+ still has a 2-million-bpd cut across all members, which also expires at the end of 2026. STORY CONTINUES BELOW THIS AD 'OPEC+ has passed the first test,' said Jorge Leon of Rystad Energy and a former OPEC official, as it has fully reversed its largest cut without crashing prices. 'But the next task will be even harder: deciding if and when to unwind the remaining 1.66 million barrels, all while navigating geopolitical tension and preserving cohesion." With inputs from agencies
Hindustan Times
4 minutes ago
- Hindustan Times
Trump vs Senator: US President tells Chuck Schumer to 'go to hell' amid nominations row
Amid the row over nominations in the Senate, US President Donald Trump told Democratic Senator Chuck Schumer to "go to hell." In a Truth Social post, Trump slammed Schumer's demand for federal funds to be released and called on Republicans to avoid striking a deal in the Senate. Hours after President Trump told Schumer to "go to hell," the Senate headed for its August recess and failed to reach a deal over Trump's nominations.(AP) "Senator Cryin' Chuck Schumer is demanding over One Billion Dollars in order to approve a small number of our highly qualified nominees, who should right now be helping to run our Country. This demand is egregious and unprecedented, and would be embarrassing to the Republican Party if it were accepted," Trump wrote on Truth Social. The president further alleged that Schumer was under "tremendous political pressure from within his own party, the Radical Left Lunatics." "Tell Schumer, who is under tremendous political pressure from within his own party, the Radical Left Lunatics, to GO TO HELL! Do not accept the offer, go home and explain to your constituents what bad people the Democrats are, and what a great job the Republicans are doing," Trump added in his post. Schumer responded to Trump's social media post and told reporters that the President "did not get his way." "He bullied us, he cajoled us, he called us names, and he went home with nothing," Schumer further said. Senate heads for recess after nomination bid fails Hours after President Trump told Schumer to "go to hell," the Senate headed for its August recess and failed to reach a deal over Trump's nominations. The house is now set to resume in September and Republicans are expected to change Senate rules to speed up the pace of confirmations for Trump's nominations. Since the start of his term, Senate Democrats have blocked many nominees this year as part of an attempt to block out unanimous consent votes. Amid this move, Trump has added pressure on GOP senators to move quickly. The latest tussle between Democrats and Republicans comes amid Trump's nominations to the judiciary. Ahead of Saturday's session, Trump had placed great pressure on Republicans to reach a deal and cancel the August recess if needed. However, after his public attack on Schumer, Trump told Republicans to pack it up and go back to their respective states.
Mint
4 minutes ago
- Mint
2028 Presidential election candidates: Full list of Republican hopefuls eyeing the White House
The Republican race for the 2028 Presidential nomination is already taking shape, less than six months into Donald Trump's second term. With Trump constitutionally barred from running again, a crowded field of GOP hopefuls is emerging — from high-profile senators and governors to Trump-aligned Cabinet members — all maneuvering for position in early primary states, according to a report by CNN. JD Vance of Ohio is widely viewed as Trump's political heir. As a key member of Trump's administration, he enters the 2028 conversation in a commanding position. Republican voters see him as closely aligned with Trump's agenda. Secretary of State Marco Rubio is reemerging as a contender. Despite past criticism of Trump, Rubio is now seen as a loyal team player. His prior run in 2016 — where he placed third in Iowa — gives him built-in name recognition and a base of support in early states. Sen. Ted Cruz, who won Iowa in 2016 and finished second to Trump in that cycle, has remained politically active. He has maintain a high profile and kept the door open for another run. Cruz would bring experience, conservative credentials, and a national network to the race. A growing group of Republican governors could shake up the race: Glenn Youngkin (Virginia): With his term ending soon due to Virginia's one-term limit, Youngkin will soon be a free agent. His 2021 win in a blue-leaning state makes him a compelling post-Trump option. Sarah Huckabee Sanders (Arkansas): As Trump's former press secretary and now governor, Sanders remains a prominent voice in GOP politics. Her deep ties to Trump's base could make her a formidable contender. Brian Kemp (Georgia): Despite past tensions with Trump over the 2020 election, Kemp has remained a strong conservative leader and now chairs the Republican Governors Association — giving him donor access and national exposure. Ron DeSantis (Florida): After a failed 2024 run, DeSantis appears to have mended fences with Trump. His continued focus on hardline immigration policies and prior campaign infrastructure make him a likely 2028 candidate. Greg Abbott (Texas): Another governor closely aligned with Trump's immigration agenda, Abbott may leverage Texas' electoral heft to stake a claim in the race. Several sitting Republican senators are also being watched: Tim Scott (South Carolina): After his 2024 campaign, Scott ended with stronger ties to Trump, though questions remain about his ability to campaign for himself rather than Trump's ideas. Rand Paul (Kentucky) and Rick Scott (Florida): Both have been active in early primary states and continue to promote fiscally conservative policies. Josh Hawley (Missouri) and Tom Cotton (Arkansas): These senators remain on watch lists for their conservative positions and willingness to engage in national debates. As 2028 approaches, the Republican field is likely to grow, but early signs point to Vance, Rubio, DeSantis, and Youngkin as leading figures in a post-Trump GOP — each vying to define the party's future without its longtime standard-bearer.
