Indian oil refineries, Indian Oil Corporation (IOC) and Bharat Petroleum Corporation (BPCL), are looking to increase their purchases of Saudi crude oil.
Both refineries are aiming to acquire an additional one million barrels daily from Saudi Arabia, people familiar with the matter told Reuters on Tuesday, January 9. This move comes after Saudi Arabia on Sunday, January 7, reduced the official selling price of February-loading Arab Light to Asia by 2 dollars a barrel from January to 1.50 dollars a barrel over Oman/Dubai quotes.
Indian refineries interest in Saudi Arabia also comes after oil purchases from Russia dropped. India’s oil imports from Russia, a crucial source for Moscow during the Ukraine conflict, reached their lowest level in December since January 2023.
Oil purchases from Russia dropped because of unattractive pricing and not beacuse of payment problems, oil minister Hardeep Singh Puri said on Wednesday, January 3, Reuters reported.
Puri added that Russia’s oil purchases also decreased due to better crude discounts from other suppliers, without specifying which suppliers offered these discounts.
