India’s Saudi oil imports soar

India’s oil imports from Saudi Arabia jumped 29% in January from the same month a year ago, market analyst group Thomson Reuters Oil Research & Forecasts reported today.

The jump, which saw 940,000 bpd transported to India in January, is due to competitive prices and shorter shipping distances, giving OPEC countries the edge with the world’s third-largest crude oil importer.

Iraq was close behind with exports of 930,000 bpd to India, up 52% from the previous year by month. State-run Indian Oil Corporation, India’s largest commercial enterprise, buys 300,000 bpd from the country and recently signed a term deal for Iraq’s Basra Heavy. Similarly, India’s holding company Reliance Industries, owner of the world’s largest refining facility, recently came to an agreement for the country’s price-friendly oil.

In contrast, exports coming from Latin America fell by a quarter to 706,000 bpd in the same month, suggesting that OPEC’s policy of maintaining production may be working in their favour.

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