Because of storage constraints as local fuel demand slumped following the coronavirus outbreak, at least three Indian refiners have curbed oil imports from Middle East producers, including Saudi Arabia, for May.
As space to store excess oil is running out because fuel demand slashed by the spread of coronavirus, this is the second consecutive month that Indian refiners have cut their long-term crude imports.
May purchases from Saudi Arabia have been cut by one Indian refiner by about 80 percent. Less oil by 66 percent from Saudi Arabia will be taken by the second company, compared with its average monthly purchases from the country.
The first company will take just one cargo in May instead of an average of two each month for crude supplied by Abu Dhabi National Oil Co. The second company has nominated only one cargo for May and plans to receive some deferred cargoes from April.
Compared to the average monthly purchases, about 75 percent less crude will be taken by both companies from Kuwait Petroleum Corp in May. As demand has dwindled, the third Indian refining company will be taking less oil from the Middle East in May, without disclosing the volume.
