Some officials of at least three Indian refiners said that their companies had cut oil imports from Middle East producers for May as the falling demand due to the coronavirus outbreak has quickly filled up storages.
The move of the Indian refiners was in the second month in a row.
One refinery officials said that his company has slashed by 80% its oil purchases from Saudi Arabia, while an official of another company said that the cut was 66% from their average monthly purchases from the kingdom.
From Abu Dhabi National Oil Co. (ADNOC), one refiner said a 50% cut was decided, while the other said that it would receive some delayed cargoes from April and only would purchase one cargo for May.
Both companies will cut by 75% their usual crude purchases from Kuwait Petroleum Corp. (KPC) in May.
The second Indian refiner also added that Saudi will accommodate a demand for extra oil although his company does not want more for May.
A third Indian refinery said it would also cut its oil buyings from the Middle East in May, but did not reveal the volume.
A source from the Middle East producers confirmed the lower crude demand from India, adding that the companies canceling shipments will take the cargoes in the latter part of 2020 to fulfill their annual commitment.
The source said that both the Indian parties and the Middle Eastern producers will share the losses.
