PRL to buy Nigerian Bonny Light oil
Pakistan Refinery Limited (PRL) will import its first cargo of Nigerian Bonny Light crude from Vitol in September, two sources familiar with the matter said, as Asian refiners shift towards cheaper alternatives to Middle Eastern oil.
The 500,000-barrel, light-sweet crude cargo is expected to load later this month and arrive in Karachi by late September, the sources said, declining to be named as the information is not yet public. The price was not immediately known. Vitol and PRL did not immediately respond to a request for comment.
The purchase follows Pakistan's first deal to import US crude, also supplied by Vitol, by Cnergyico, which is scheduled to arrive in October. Almost all of Pakistan's crude imports are sourced from the Middle East, primarily Saudi Arabia and the United Arab Emirates.
However, along with other Asian refiners, Pakistan's industry has shown increased interest in recent months in supplies from elsewhere, including the US West Texas Intermediate crude and Kazakh CPC Blend, after Middle Eastern supplies became more expensive.
As early as 2014, Pakistan imported Nigerian Yoho crude, according to data from Kpler, but the Bonny Light purchase is the country's first known purchase of Bonny Light, which is valued for its high yields of gasoline and diesel.
Oil is Pakistan's largest import item, with crude and petroleum products accounting for $11.3 billion worth of imports in the fiscal year ended June 30, 2025, representing nearly a fifth of the country's total import bill.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 days ago
- Business Recorder
Asian currencies struggle after US data
BENGALURU: Asian stocks slipped on Friday after an above-forecast US producer price print tempered expectations for a Federal Reserve rate cut, bolstering the dollar and weighing on regional currencies. Stock markets in Malaysia and the Philippines fell 0.4% and 0.2% each, while Singapore slipped 0.9%. The MSCI gauge of Asian emerging market equities fell 0.3%. 'ASEAN markets are unlikely to sustain their recent advances because lower inflation and interest rates, US dollar weakness have yet to translate to an improving growth outlook,' said Alan Richardson, senior portfolio manager at Samsung Asset Management. US producer prices rose more than expected in July, data overnight showed, dampening hopes of a jumbo Federal Reserve rate cut in September and denting risk appetite in regional markets. A softer consumer inflation print earlier this week had boosted expectations of policy easing in the world's largest economy and lifted risk assets across the board. The dollar index steadied and held onto previous session gains after the inflation data, keeping Asian currencies under pressure. The Philippine peso slipped 0.2%, and the Taiwan dollar similarly dipped 0.2% to its lowest level since late-May, while most other regional currencies were little changed. 'EM Asian currencies could be under pressure somewhat in the near-term but will likely regain some strength going forward especially in the fourth quarter and first quarter of 2026,' said Poon Panichpibool, markets strategist at Krung Thai Bank, pointing to potential dollar weakness after the Fed's policy path becomes clearer.
Business Recorder
2 days ago
- Business Recorder
Global LNG: Asian spot LNG prices ease as markets eye Trump-Putin meeting
LONDON: Asian spot liquefied natural gas (LNG) prices declined this week on soft demand and strong storage inventories and as markets awaited the outcome of a meeting between U.S. President Donald Trump and Russian leader Vladimir Putin later today. The average LNG price for September delivery into north-east Asia was at $11.65 per million British thermal units (mmBtu), down from $11.90/mmBtu last week, industry sources estimated. The contract for October delivery was estimated at $11.45/mmBtu. 'This (meeting) may not only be decisive for Ukraine but also for the fate of Russian sanctions and economic development between the two nations. It may not be surprising if Russia would open discussion on Arctic LNG 2, as it's clearest link to LNG markets,' said Klaas Dozeman, market analyst at Brainchild Commodity Intelligence. Sanctioned by the United States, Russia's 19.8 million tons per annum (mtpa) Arctic LNG 2 terminal has had two of its threetrains installed and could quickly add to global supply if sanctions were loosened. Conversely, Russia's Yamal and Sakhalin LNG export terminals export about 30 mtpa and could be subject to future sanctions if those were bolstered, said Martin Senior, head of LNG pricing at Argus. Global LNG: Asian spot prices inch up on geopolitical, supply concerns Geopolitics remain the wild card, said Arturo Regalado, senior LNG analyst at Kpler. 'A lack of progress could reignite concerns over tighter sanctions on Russian energy, as well as potential secondary U.S. tariffs on Russian oil and gas buyers,' he said. While the weather has turned a slightly hotter again in Asia it has not attracted major spot purchases - partly due to the pressure on oil prices - which meant oil-indexed long term LNG contracts became competitive against spot purchases, Dozeman said. Argus' Senior said that some Chinese demand has emerged, with Beijing Gas buying two cargoes below $12/mmBtu. The firm last year said that it viewed $12/mmBtu and above as too expensive for LNG imports. Prices are seen lower next week as high Chinese inventories continue to keep north-east Asian spot demand soft, with stable Pacific supply and seasonal temperatures adding to the bearish tone, said Kpler's Regalado. In Europe, gas prices at the Dutch TTF hub were trading in a narrow range on Friday with heatwave across the continent was starting to ease and as markets focused on the Trump-Putin meeting. S&P Global Commodity Insights assessed its daily North West Europe LNG Marker (NWM) price benchmark for cargoes delivered in September on an ex-ship (DES) basis at $10.582/mmBtu on August 14, a $0.415 /mmBtu discount to the September futures price at the TTF hub. Argus assessed the price at $10.540/mmBtu, while Spark Commodities assessed it at $10.534/mmBtu The U.S. arbitrage to north-east Asia via the Cape of Good Hope is still incentivising U.S. cargos to deliver to Europe. Similarly, the arbitrage via Panama is pointing to Europe, said Spark Commodities analyst Qasim Afghan. Global LNG freight rates remained relatively steady, with the Atlantic rates assessed at $36,000/day and Pacific rates at $33,250/day, Afghan added.
Business Recorder
2 days ago
- Business Recorder
KSE-100 Index closes flat as selling erases intra-day gains
The Pakistan Stock Exchange's (PSX) benchmark KSE-100 closed flat on Friday, as selling in the final hours erased the gains the index had made earlier during the day. The KSE-100 started the session positive, with investors rejoiced over Moody's Ratings' improvement in Pakistan's credit rating. It hit an intra-day high of 147,534.41. However, selling in the latter hours erased the intra-day gains and pushed the index into the negative territory. At close, the benchmark index settled at 146,491.63, marginally lower by 37.67 points or 0.03%. Top positive contribution to the index came from EFERT, LUCK, ENGROH, MEBL & AIRLINK, as they cumulatively contributed 512 points. On the other hand OGDC, UBL, PPL, HUBC and MARI lost value to weigh down on the index by 499 points, brokerage house Topline Securities said in its post-market report. Traded value wise AIRLINK, OGDC, PSO, LUCK, and NBP dominated the trading activity, it added. 'Investors largely squared off weekly positions, which kept sentiment mixed and prevented the index from holding above the 147,000 mark. The session's tone reflected a cautious approach ahead of the weekend, with traders balancing positions in anticipation of fresh cues for the market's next directional move,' Ali Najib, Deputy Head of Trading at Arif Habib Ltd, said in a statement. On Wednesday, PSX experienced a session of mild profit-taking, as bears took control amid concerns over a surge in the trade deficit and unmet IMF conditions for provincial tax collection. The KSE-100 Index closed at 146,529.31 points, a decrease of 476.02 points or 0.32%. The stock market was closed on Thursday, i.e. 14th August, on account of a public holiday. Continuing its winning streak in a straight 8th week, the KSE-100 index gained 0.76% by adding 1,108 points. After opening at 145,650 the index touched a high of 147,977 and a low of 145,259 eventually closing the week at 146,491 level. An International Monetary Fund (IMF) delegation is scheduled to visit Pakistan at the end of September, with the country expecting to receive the third tranche of $1 billion upon completion of the next review. Meanwhile, the State Bank of Pakistan (SBP), in its first-ever biannual Monetary Policy Report published on Wednesday, said that the return of stability in the domestic economy has promoted the country 'in a better position today to manage external shocks and domestic risks than it was two years ago'. The central bank said foreign investment inflows were projected to improve in the wake of the recent upgrade in the country's sovereign credit rating and the resultant decline in CDS (credit default swap) spreads. 'All these factors, combined with fresh liquidity moving from the debt market into equities, have contributed to the recent momentum,' Waqas Ghani, Head of Research, told Business Recorder. Globally, Asian stocks made an uneven recovery as higher-than-expected producer price inflation dampened expectations of a jumbo rate cut at the Federal Reserve's September meeting, while US bonds and equity futures stabilised. MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.3% after a report on Thursday from the Bureau of Labor Statistics, which showed the Producer Price Index increased 0.9% in July on a month-over-month basis, well above economists' expectations. The market is currently pricing in a 92.1% probability of a 25 basis point rate cut at its September meeting, compared with a 100% likelihood of a cut on Thursday, according to the CME Group's FedWatch tool. The chance of a jumbo 50 basis point cut fell to 0% from an earlier expectation of 5.7% a day ago. Meanwhile, the Pakistani rupee continued to march upwards against the US dollar, appreciating 0.06% in the inter-bank market on Friday. At close, the currency settled at 282.06, a gain of Re0.16. Volume on the all-share index decreased to 473.60 million from 647.09 million recorded in the previous close. The value of shares declined to Rs32.88 billion from Rs40.89 billion in the previous session. Aisha Steel Mill was the volume leader with 30.03 million shares, followed by Media Times Ltd with 21.73 million shares, and Air Link Communication Limited with 18.88 million shares. Shares of 479 companies were traded on Friday, of which 226 registered an increase, 219 recorded a fall, while 34 remained unchanged.
