India set to increase Saudi crude imports in June, cites lower OSPs

London (Quantum Commodity Intelligence) - India's state-owned refiners have requested increased volumes from Saudi Aramco, drawn by lower prices by the world's top oil exporter, reported Reuters on Thursday, referencing refining sources.

Reuters named the refineries as Indian Oil Corp, Bharat Petroleum Corp, Hindustan Petroleum Corp and Mangalore Refinery, who buy 14.8 million-15 million barrels of Saudi oil a month.

Saudi Arabia has cut June official selling prices (OSPs) of all crude grades it sells to Asia, although the cuts were at the lower ends of expectations.

For Aramco's key customer base in Asia, differentials for the flagship Arab Light grade were reduced by $0.10/barrel to +$1.70/b, while Arab Medium was cut by $0.20/b to +$1.25/b.

India has publicly criticized OPEC+ policy in recent months, particularly Saudi Arabia, blaming production cuts for higher oil prices.

Retail oil prices have become a major political topic in India, but at the same time, taxation on gasoline and diesel has been hiked.

India, the world's third-biggest oil importer and consumer, imports more than 80% of its oil needs and relies heavily on the Middle East.

Indian refiners have been looking to diversify crude supplies, but according to Quantum data crude oil priced against Brent has become more expensive compared to barrels pricing versus Dubai or Dubai/Oman.

The Brent/Dubai EFS hit a 17-month high of $3.74/b on April 26, while the June Brent/Dubai cash spread hit fresh one-year highs of $3.04/b, making crude imported from the Atlantic more expensive for Asian refiners.