Saudi Minister of Energy, Industry and Mineral Resources Eng. Khalid al-Falih, who is on a two-day visit to India, has said oil markets are rebalancing and inventories are expected to continue declining this year.
“The oil markets, it’s clear, are rebalancing. This is a period of soft demand as we all know because of seasonality. Refineries are undergoing maintenance as well as low consumer demand but the data speaks for itself," he said.
Indian Petroleum Minister Dharmendra Pradhan said India is seeking a reasonable price for crude oil from Saudi Arabia, in a move that could help Riyadh regain top spot in supplying the world's third largest oil consumer.
"Some instrument can be developed so that the pricing is suitable for both of us," Pradhan said after a meeting with Falih.
In an attempt to attract Saudi investments, Pradhan stated that India offered Saudi Arabia a stake in the country’s future strategic oil reserves.
"The way we have done an arrangement with ADNOC (Abu Dhabi National Oil Company) for storage facility, the same way we are discussing with (Saudi) Aramco," Pradhan said.
India and Saudi Arabia also discussed investment opportunities in a proposed oil refinery on the west coast of India with a capacity of 1.2 million barrels per day and a petrochemicals project in the southern city of Kakinada, Pradhan added.
Saudi Aramco, world's biggest oil producer, is investing in refineries abroad to help lock in demand for its crude and expand its market share ahead of its planned initial public offering. Last year Saudi Arabia pledged billions of dollars of investment in projects in Indonesia and Malaysia as part of long-term oil supply deals.
