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India decreases its Saudi oil purchases for Russian oil.

Image Credit: livemint.com

Two Indian refiners are expected to buy less crude oil from Saudi Arabia in the coming month, after State oil producer Saudi Aramco raised the official selling price (OSP).

Saudi Aramco is the world’s top oil exporter and the company decided to raise oil prices for all regions. India, which is the third biggest oil importer in the World is taking a huge hit with the recent surge in prices. Some Indian states are selling oil at record prices.

According to Reuters, there are two companies known to be ready to buy less of the Saudi Oil. During the month of May these companies are expected to buy more Russian oil, which due to western sanctions, imposed on the country due to its war on Ukraine, is at a deep discount. It is believed that these two companies (sources have not revealed the names of these companies) have bought 16 million barrels of cheaper Russian oil for May.

Even though the combined purchases of Russian oil by the two Indian refiners constitute a small fraction of India’s overall needs, it is significant for Russia as it lost its traditional European buyers.

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