India to buy oil from cheapest supplier: Oil Min
New Delhi: With Saudi Arabia giving cold shoulder to its plea for easing production controls, India on Friday said it will buy oil from any country that will give it at cheaper rates and on favourable business terms.
Refiners in the world's third-biggest oil importer are snapping up more cargoes from outside the Middle East in an attempt to diversify suppliers.
The US in February overtook Saudi Arabia to become India's second-biggest supplier but that happened prior to the March 4 decision of the OPEC+ alliance to keep a tight rein on output.
Speaking at Times Network India Economic Conclave, Oil Minister Dharmendra Pradhan said India will keep its interests in mind while deciding on imports.
He termed Saudi Energy Minister Prince Abdulaziz bin Salman asking India to use oil it bought at rock bottom rates last year instead of egging producers to raise output to cool prices as an "undiplomatic answer" by a "close friend".
"India will keep its interest in mind in deciding on its strategic and economic decisions," he said. "We are a consuming nation and we will have to import energy for a long time. So whosoever gives up cheap, and easy, we will buy from them."
Anyone supplying oil at cheaper rates is the priority. "Whichever country it may be... we have to do, we will do," he said.
Pradhan had in the run-up to March 4 meeting of OPEC+ urged the producers' group to ease production curbs to fulfill their promise of stable oil prices, saying rising international oil prices were hurting economic recovery and demand.
But even prior to the March 4 decision of OPEC+ to continue with output curbs, the US had overtaken Saudi Arabia to become India's second-biggest crude oil supplier behind Iraq in February.
Asked if the import trends in February were an indication of India preferring the US over Saudi Arabia, Pradhan said, "It is not an issue of we are going to be closer to who. The issue is who is going to serve our interest."
Iraq, which is part of the OPEC, is India's largest supplier, he said, adding UAE "is a very reliable partner" and there are off-take agreements with Kuwait and certain African countries.
UAE, Kuwait and Nigeria -- some of the biggest suppliers of oil to India -- are all OPEC members.
"We are an open, free market. Our oil marketing companies and private sector oil majors are free to take oil from any part of the world, whichever country will provide favourable business terms, whether it is America, or Iraq or UAE or Saudi Arabia. India's common interest is paramount in decision," he said.
On the Saudi minister's statement after the OPEC meeting on March 4, Pradhan said "that was not a cold shoulder" to India's demand for easing production curbs. "That was a in a way undiplomatic answer by some of our close friend," he said. "I politely disagree with that kind of approach."
