India cuts Oil Imports from Saudi Arabia

India to cut crude oil imports from Saudi Arabia in response to sustained production cuts by the OPEC+countries amid rising crude oil prices.

Backdrop

OPEC+, a group of 23 major oil-producing countries that had cut crude oil production levels during the peak of the Covid- 19 pandemic as the price of Brent crude fell to below $20 per barrel, have decided to maintain lower production levels through April despite crude oil prices recovering to pre-pandemic levels. Saudi Arabia  alone has extended a 1 million barrel per day production cut through April contributing to elevated crude oil prices.

Now we see India’s Situation;

India imports over 80% of its crude oil requirements. Prices of petrol and diesel reaching record high level across India with the price of petrol crossing Rs 100 per liter in some parts, hampered the economic recovery

ALTERNATES;

Oil Diplomacy – A reduction from Saudi Arabia would likely lead to increased imports from other gulf countries and the United States. Saudi energy minister Prince Abdulaziz bin Salman has said that India should use its strategic petroleum reserves.

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