Indian refineries are preparing to demand more Saudi crude after a huge price cut

10 Jan 2024

India's two foremost oil refiners are reportedly pursuing Saudi crude imports following the reduction of the official selling price of its key export grades in February, which was the lowest in two and a half years. India's top refiners, Indian Oil Corporation and Bharat Petroleum Corporation, are considering lifting 1 million barrels of additional oil from Saudi Aramco in February.

Usually, Saudi Aramco informs Asian buyers of its monthly crude oil allocation by the 10th of each month. According to a report, the IOC is seeking additional oil from Saudi Arabia and West Africa, partly because it is facing difficulties buying Russian light sweet crude Sokol due to challenges in payments. However, Indian oil minister Hardeep Singh Puri said that the decline in Russian oil imports into India was due to unattractive prices and not payment issues.