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Taiwan’s CPC Corp to buy US crude via term contract for first time -sources

Taiwanese refiner CPC Corp is set to buy U.S. crude oil through a term contract for the first time, two industry sources said.

Negotiations are ongoing and the tender, for U.S. West Texas Intermediate (WTI) Midland, could be awarded later this week or early next week, one of the sources said.

“Prices for WTI crude are competitive, so (CPC) has decided to buy through term,” the source added.

The contract period will likely be from February to June, the source said. Both sources declined to be identified as they were not authorised to speak with media.

The Taiwanese state refiner has been regularly importing U.S. crude since December 2017 to replace some of its West African crude imports, data on Refinitiv Eikon showed.

Its U.S. crude imports hit an all-time of 6.1 million barrels in October and are set to remain elevated at 4.1 million barrels in November, the data showed.

The company has term contracts to purchase West African crude and Iranian crude, but halted purchase from the latter ahead of U.S. sanctions on Tehran due to start in early November.

A CPC spokesman could not immediately be reached for comment on the matter.
Source: Reuters (Reporting by Jessica Jaganathan and Florence Tan Editing by Joseph Radford)

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