India’s crude oil imports from Saudi Arabia may pick up modesty after the kingdom cut the official selling price of its key export grade for February, but the demand for discounted Russian Urals is still seen surpassing that for the oil from Saudi Aramco.
Analysts feel any lartge additional buying of Saudi crude by India is unlikely as Iraqi barrels too would come slightly more cost-competitive than the Saudi variety.
The recent Saudi price cuts have reduced the formula price of Arab Light from a $3.50 per barrel premium to Oman/Dubai to $1.50 per barrel, as per analysts. “Delivered into India, that is still $6-7 per barrel more expensive than Urals,” Viktor Katona, lead crude analyst at Kpler said.
