Pakistan has diversified its crude oil supplies with a second purchase of U.S. crude, breaking from its traditional reliance on Middle Eastern imports. Cnergyico, the country’s largest refiner, ordered 1 million barrels of U.S. West Texas Light (WTL) crude for November delivery through Vitol. This follows their debut purchase in August.

The deal is part of a term supply arrangement between Cnergyico and Vitol, providing access to various grades. Refining margins for U.S. barrels were slightly stronger than Gulf grades, prompting the decision. Pakistan historically relied heavily on the Middle East for crude, but with changing premiums, diversification is being considered.

The shift to U.S. crude follows an August trade deal between the U.S. and Pakistan, opening the door for U.S. energy exports to Pakistan. President Trump has been pushing for such arrangements to boost U.S. oil exports abroad. Favorable economics support the U.S. arbitrage for now, but future imports could be limited by rising freight costs and U.S. crude premiums.

Cnergyico, with plans for capacity expansions and upgrades, is preparing to support future demand growth. The company already operates Pakistan’s only offshore terminal capable of receiving large crude tankers. Despite potential limitations, the trend towards U.S. crude imports is supported by current economic factors.

Read more at Yahoo Finance: Pakistan Turns to Vitol for More U.S. Crude