With pressure building up on India to cut down on Iran oil supplies, it is now speculated that the supplies deficit will be fulfiled from Saudi Arabia.
It need be mentioned that Saudi Arabia is as it is world’s biggest oil exporter.
So far , there are media reports to suggest that Saudi Arabia will supply domestic buyers with an additional 4 million barrels of crude oil in November.
The extra cargoes indicate a willingness by Saudi Arabia to increase crude supply to make up the shortfall once sanctions by the United States on oil exports from Iran.
India is Iran’s top oil client after China.
Meanwhile, Reliance Industries Ltd, Hindustan Petroleum Corp, Bharat Petroleum Corp and Mangalore Refinery Petrochemicals Ltd are seeking an additional 1 million barrels each in November from Saudi Arabia.
This is amid refiners in the country have placed orders to buy 9 million barrels from Iran in November.
Oil Minister Dharmendra Pradhan said on Monday that he spoke with Saudi Energy Minister Khalid al-Falih last week and reminded him that OPEC and other major oil producers had promised to raise their output at a meeting in June.
The country imports an average of 25 million barrels per month from Saudi Arabia.>