Cnergyico boosts US oil purchases to cut Hormuz supply risks

Pakistan’s largest refiner Cnergyico is increasing purchases of U.S. crude as the disruption around the Strait of Hormuz prompts Islamabad to diversify oil supplies and reduce reliance on Gulf shipping routes. The refiner imported around 8.1 million barrels of U.S. crude over the past nine months, including 7.1 million barrels valued at nearly $750m during the fiscal year ended June, according to Vice Chairman Usama Qureshi, as reported by Reuters. Cnergyico is evaluating whether to make additional spot purchases or enter longer-term supply agreements with Vitol and other suppliers, with pricing, reliability and supply security among the key considerations. The company could further raise U.S. crude imports if Pakistan’s proposed U.S. EXIM Bank trade-finance facility becomes available to the refiner. The facility would allow Pakistani buyers to defer payments to U.S. exporters for up to three years.