According to Reuters, Indian state refiners are planning to cut oil imports from Saudi Arabia by about a quarter in May, in an escalating stand-off with Riyadh following OPEC’s decision to ignore calls from New Delhi to help the global economy with higher supply.
Two sources familiar with the discussions said the move was part of the government’s drive to cut dependence on crude from the Middle East.
Indian Oil Corp, Bharat Petroleum Corp., Hindustan Petroleum Corp, and Mangalore Refinery and Petrochemicals Ltd are preparing to lift about 10.8 million barrels in May, the sources said on condition of anonymity.
State refiners, which control about 60% of India’s 5 million barrels per day (BPD) refining capacity, together import an average of 14.7-14.8 million barrels of Saudi oil in a month, the sources said.
India, the world’s third-biggest oil importer and consumer, imports more than 80% of its oil needs and relies heavily on the Middle East.
Hit hard by rising oil prices, India’s oil minister Dharmendra Pradhan has repeatedly called on the Organization of Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, to ease supply curbs.
He has blamed Saudi’s voluntary cuts for contributing to a spike in global oil prices.
HJ/PR