India to buy one-third less oil from Saudi Arabia in May

State refiners slashed their orders for Saudi Arabian crude in May by a third in a signal to the kingdom that a big buyer like India cannot be antagonised, people with direct knowledge of the matter said. The gap can be made up in later months if the standoff between the two countries is resolved, they added.

IndianOil, BPCL, HPCL and MRPL, all state-run refiners, placed orders on Monday for less oil than usual from Saudi in May and plan to make up for the shortfall by buying more from the spot market, they said. Expectations of lower domestic fuel demand next month, due to Covid surge and the onset of the monsoon, has also led to the cut in Saudi oil purchases, they said.