How will US midterms impact Indian equities, bond yields, crude oil?
Historically, US equities have performed strongly following midterm elections. The S&P 500 has gained an average of around 6 per cent over the subsequent 60 trading days, data shows.
Indian state-run oil refiners are shifting their crude procurement strategy to delivered, or CIF, pricing as shipping expenses soar due to geopolitical tensions, according to petroleum ministry officials and industry sources. Under CIF agreements, sellers assume responsibility for transporting crude to the buyer's destination, providing refiners with a more stable landed cost and protection against sudden freight rate increases, which have spiked in the Gulf region due to vessel disruptions and attacks.
A senior refinery official stated that the company now buys crude on a delivered basis, rather than the traditional FOB terms, to secure a predictable cost structure and avoid unexpected freight hikes. Hindustan Petroleum Corp. Ltd., one of India's largest refiners, is increasingly considering purchased crude on a landed basis, except when it can send a vessel to collect shipments at a lower cost.
The company's chairman and CEO, Vikas Kaushal, noted that the market is currently volatile, making it difficult to predict how crude purchases will impact profitability. Refiners are now comparing delivered crude costs from suppliers worldwide to select the lowest landed-cost options instead of relying on FOB contracts and arranging shipping independently.
The shift reflects the refiners' reluctance to maintain fixed term-contract and spot-market procurement ratios amidst heightened uncertainty in the global crude market.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Indian refiners favor delivered crude in procurement shift as shipping costs mount hellenicshippingnews.com
