Monday, March 16, 2020

Bargain Buying: "India plans to top up strategic tanks with cheap Saudi, UAE oil - sources"

A Reuters exclusive:
India plans to take advantage of low prices for oil from Saudi Arabia and the United Arab Emirates to top up its strategic petroleum reserves (SPR), two sources familiar with the matter said on Monday.

Global oil prices have fallen around 40% in March as the impact of the coronavirus pandemic has destroyed demand, while supplies are growing following Moscow’s refusal to back deeper output cuts at a meeting of the Organization of the Petroleum Exporting Countries and its OPEC+ allies.

Leading OPEC producers Saudi Arabia and Abu Dhabi have said they will increase output while cutting prices, giving big consumers the chance to fill up at discounted prices.

“It is an opportune time for us and for them (Abu Dhabi National Oil Company and Saudi Aramco) to finalize the deals and fill the SPRs...If there is any delay, we might fill the SPRs on our own,” said an official familiar with the matter, asking not to be named....MORE
 India is one of the world's largest oil importers, something over 5mm/bbl day.