A major new fuel supply deal has been confirmed between BP and Rosneft.
BP has agreed to pay $6 billion (£3.7 billion) for refined products from the Russian oil firm, with analysts suggesting the fuel will mainly be heading for China.
A Singapore-based fuel oil trader told Reuters: "BP will have a bigger trading presence in the straight-run fuel oil market in China."
BP is now Rosneft's second-largest shareholder and has been doing deals with the company for just a few weeks, following in the footsteps if rivals such as Shell.
Rosneft confirmed it is also going to be selling 3.2 million tonnes of fuel oil worth up to $2.6 billion to BP Singapore.
The oil will be coming from the Far East ports of Nakhodka or Vanino and will be delivered between November 2013 and December 2014.
BP's share price moved slightly higher today (November 12th) after the firm sealed the major fuel supply deal with Rosneft. At 13:26 GMT, its stocks were trading 0.41 per cent higher.
Find up to date information on the FTSE 100 and spread betting strategies at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.