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India intends to cut oil imports from Saudi Arabia by about a quarter by May, in light of escalating confrontation with Riyadh after “OPEC” decision ignore New Delhi’s calls to increase oil production and reduce oil prices.
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Indian newspaper “Economic Times” said today, Thursday, that government refineries in India plan to buy fewer barrels from Saudi Arabia next May, after OPEC ignored New Delhi’s appeal. to increase production to calm international crude oil prices.
And pushed further production cuts by Saudi Arabia and its allies, which have raised prices by a third this year to more than $ 68 a barrel, pushed fuel prices in India to rock bottom on Wednesday. record levels.
The Indian Oil Corporation, a Crown corporation, the “Indian Oil Corporation”, “Bharat Petroleum”, the “Hindustan Petroleum” company and the refinery “Mangalore Petrochemicals Ltd.” discussed the possibility of cutting Saudi oil purchases for the month. of May, and he has until April 5 a deadline to inform Riyadh of this matter.
The sources said weak demand for fuel in India due to increased cases of the Corona virus, or the closure of refineries for regular maintenance, could also contribute to the decrease in purchases from Saudi Arabia in may.
The refineries have annual purchase agreements with the Kingdom of Saudi Arabia and must share their monthly loading plans approximately 4 weeks in advance. There is no financial penalty for not honoring the agreement.
A person familiar with the matter said India was trying to beef up, hoping the Saudis would understand its concerns.
India, the world’s third largest importer of oil, has been particularly upset by Riyadh’s neglect of New Delhi’s call for increased production.
Saudi Arabia has enjoyed friendly trade relations with India for decades, which have grown even stronger in recent years.
Source: Economic Times
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