India’s oil demand to be met by Saudi
India, the world’s third-biggest oil importer, is grappling with a combination of rising oil prices and falling local currency. Retail prices for gasoline and diesel fuel in India are at record highs and the government has cut its excise tax on fuel to ease some of the pain for consumers. Meanwhile Arabia and other major producers have shown their commitment, to cushion the market from oil price shocks.
Saudi Arabia has the capacity to produce 12 million bpd and is currently producing 10.7 million bpd, adding that production will rise further next month.
Khalid Al Falih, Minister of Energy, Saudi Arabia, during India Energy Forum 2018 said that Saudi Arabia is committed to meeting its growing oil demand as the State oil company Saudi Aramco plans to supply Indian buyers with an additional 4 million barrels of crude oil in November. He also added that Saudi Arabia wants to invest in Indian downstream projects and strategic oil storage.
India plans to build two strategic storage facilities to hold 6.5 million tonnes of oil costing around 110 billion Rupees ($1.6 billion) through a joint partnership between an Indian state firm and private company. Falih also said Saudi Basic Industries Corp (SABIC) is keen to invest in India’s chemical sector. Saudi Aramco has an initial pact to take a 25 percent stake in the planned 1.2 million bpd West Coast refinery.
Saudi Energy Minister Khalid al-Falih addresses the gathering during India Energy Forum in New Delhi