Saudi Arabia appears to be filling the Iranian crude oil supply gap to Indian refineries, with reports suggesting the world’s top oil exporter will add another 4 million barrels (Mmbbl) of crude to India’s supply in November, Kallanish Energy learns. Refineries Reliance Industries, Bharat Petroleum Corp, Hindustan Petroleum Corp. and Mangalore Refinery Petrochemicals have asked Saudi Aramco for an extra 1 Mmbbl each next month, Reuters reported Wednesday, citing unnamed market sources.
Last week, Saudi crown prince Mohammed Bin Salman said in an interview with Bloomberg that Trump’s request that Saudi Arabia and other Opec countries ensure they meet any loss of supply from Iran, has been fulfilled. “We export as much as two barrels for any barrel that disappeared from Iran recently,” the prince said. “So we did our job and more.” With Saudi Arabia and Russia publically committing to add some 1 Mmbpd of crude to the market, in light of current market conditions, there are fears a supply crunch due to the Nov. 4 implementation of sanctions on Iran, will continue to lift crude prices.
There are rumors the Saudis and the Russians have privately agreed to boost their output further. But Saudi oil minister Khalid Al-Falih said last week Riyadh’s 1.3 Mmbpd spare capacity will only be used if demand materializes, adding the market seems to be well-supplied and there’s no need for further input.