State-owned refiners plan to cut oil imports by about a quarter in May, ignoring calls from New Delhi after OPEC’s decision to help global supplies to help Riyadh Is growing rapidly.
Two sources familiar with the discussion said the move was part of the government’s campaign to cut dependence on crude from the Middle East.
Sources said that Indian Oil Corporation, Bharat Petroleum, Hindustan Petroleum and Mangalore Refinery and Petrochemicals Ltd are set to lift around 10.8 million barrels in May.
Sources said the state’s refiners, which control about 60% of the 5 million barrels per day (bpd) of refining capacity, together import 14.7–14.8 million barrels of Saudi oil.
India, the world’s third largest oil importer and consumer, imports more than 80% of its oil needs and relies heavily on the Middle East.
Because of rising oil prices, Petroleum Minister Dharmendra Pradhan has repeatedly called the Organization of Petroleum Exporting Countries (OPEC) and its partners, known as OPEC +, to ease supply restrictions.
He attributed Saudi’s voluntary cuts to contributing to the spike in global oil prices.
OPEC + decided this month to cut most of it in April. Responding to Mr. Pradhan’s request, Saudi Energy Minister Prince Abdulaziz bin Salman suggested India plunge into the strategic reserves filled with cheap oil purchased next year.
The ministry responded that refiners accelerate their diversification of crude oil sources and reduce dependence on the Middle East.
Sources said April oil imports from Saudi Arabia could not be cut because nominations were made before the OPEC + decision in early March, with sources saying the May plans were preliminary and the final May nominations for April. Will be known in the beginning.
Saudi Arabia has cut April oil supplies for some Asian refiners, but has maintained average monthly volumes for Indian refiners. However, the Kingdom has rejected demand from Indian companies for additional supplies.
The Middle East’s share of India’s total imports fell to a 22-month low in February.
In February, the United States became the second largest supplier to India after Iraq, while Saudi Arabia, which has consistently been one of India’s top two suppliers, slipped. 4 for the first time since at least January 2006.
Two refiners – IOC and MRPL – have also issued tenders seeking oil for delivery in May.
“The oil companies take their decision regarding the purchase of crude,” the petroleum ministry told Reuters. The state refiner did not respond to Reuters’ request for comment.
.
Add Comment