Indian refineries plan to reduce oil purchases from the Middle East in the coming months. OPEC Plus supply restrictions have made American crude more economical for India. After the Covid-19, people have increased their use of private vehicles.
Due to the slow recovery of diesel, Indian oil companies are also preferring low-sulfur American oil over the more expensive Middle East oil. India is the third largest oil importer in the world. Indian Oil is the largest of the state-owned oil companies and has planned to increase purchases from the US on the spot market by cutting purchases from Saudi Arabia. India’s refineries are scheduled to cut 1.08 million barrels of purchases from Saudi Arabia in May.