By Nidhi Verma
NEW DELHI (Reuters) – Indian state refiners on Thursday positioned orders for normal provides from Saudi Aramco for June, after decreasing purchases this month, drawn by decrease costs by the world’s high oil exporter, 4 sources stated on Thursday.
The refiners – Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals Ltd – usually purchase 14.8 million-15 million barrels of Saudi oil a month.
“This time there isn’t a route from the ministry to chop imports in June and in contrast to final time they (Aramco) have decreased the costs as nicely,” stated one of many sources.
Saudi Arabia has minimize the June official promoting costs (OSPs) of all crude grades it sells to Asia.
It set the June OSP for the flagship Arab gentle crude at $1.7 a barrel above the Oman/Dubai common for Asia, down 10 cents from Might and its first worth minimize since December final yr, sources informed Reuters.
India, the world’s third-biggest oil importer and shopper, imports greater than 80% of its oil wants and depends closely on the Center East.
Earlier this yr New Delhi blamed cuts by the Saudis and different oil producers for driving up crude costs as its financial system tries to deal with the pandemic and suggested state refiners to chop purchases.
India urged refiners to diversify crude sources to chop reliance on the Center East and directed them to cut back consumption of Saudi oil. The refiners minimize purchases by over a 3rd in Might.
One other supply stated Indian refiners can’t proceed with the cuts from Saudi Arabia on a sustained foundation as the businesses need to carry the volumes underneath annual contracts.
No fast response was accessible from the businesses.
(Reporting by Nidhi Verma in New Delhi; Enhancing by Chris Reese and Matthew Lewis)
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