US refiner Tesoro buys cargo of Libyan rebel oil

NEW YORK Wed May 25, 2011 4:07pm EDT

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NEW YORK May 25 (Reuters) - U.S. oil refiner Tesoro (TSO.N) has bought a cargo of crude oil from Libya's eastern rebel movement to run in its Hawaii refinery, the company told Reuters on Wednesday.

The cargo of crude, estimated at about 1 million barrels, has been sitting idle near Singapore since late April and was originally bought from Libyan rebels in early April, according to tanker tracking data and trading sources. The crude is aboard an oil tanker chartered by Swiss oil trading giant Vitol SA.

Tesoro spokesman Mike Marcy confirmed by email that San Antonio,Texas-based Tesoro has bought the Libyan crude cargo to run in its 94,000 barrel per day Hawaii refinery.

Reuters tanker tracking data shows the cargo will arrive in Honolulu around June 7.

"This purchase was made in strict accordance with the relevant White House Executive Order, signed by President Obama," Marcy wrote in an email.

Some Libyan crude is subject to sanctions due to the civil war in the North African country. However, the U.S. government has approved doing business with Libya's eastern rebel movement. (Reporting by Joshua Schneyer, Bruce Nichols and Emma Farge; Editing by David Gregorio)

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