America’s WTI crude unqualified to enter Sri Lanka due to lack of price competitiveness

As part of Sri Lanka’s decision to reduce the trade gap with the U.S., the Sri Lankan government decided to include  WTI crude when calling for tenders periodically for imports

By Kelum Bandara  

Despite Sri Lanka’s decision to import crude oil from the United States, its WTI (West Texas Intermediate) crude has not qualified to enter the Sri Lankan market because it is not price -competitive this time, an official said.  

However, the Ceylon Petroleum Corporation (CPC) remains hopeful that WTI crude would become competitive for Sri Lanka to import in the near future.   

As part of Sri Lanka’s decision to reduce the trade gap with the U.S., the Sri Lankan government decided to include  WTI crude when calling for tenders periodically for imports. According to the latest tender which closed on October 28, the CPC did not find it price- competitive.  

The official said that only Murban crude qualified this time.  

“WTI crude came very close. It will be competitive enough in the future. Then, we can place orders to import fuel from the United States,” he said.  

Sri Lanka imports around 180,000 tonnes of crude oil a month.   

Oil prices edged higher on Wednesday as investors digested U.S. inventory data pointing to firmer fuel demand, while weaker economic data from top oil importers weighed on prices. Brent crude futures rose by 45 cents, or 0.7%, to $64.89 a barrel by 1041 GMT, having touched a near two-week low in the prior session. U.S. WTI crude was up 46 cents, or 0.76%, at $61.02, according to the international media.