India shuns Gulf producers, diverts oil to strategic reserves – Arab News

India shuns Gulf producers, diverts oil to strategic reserves – Arab News

India shuns Gulf producers, diverts oil to strategic reserves /node/1659481/business-economy. India will divert 19 million barrels of Gulf oil from state-run firms to strategic petroleum reserves (SPRs), skipping direct purchases from producers to help refiners get rid of extra oil as their storage is full, three sources said.. Since then situation has changed as Indian fuel demand has collapsed following a nationwide lockdown to stem the spread of the coronavirus, leading some refiners to declare force majeure on crude purchases.. Hindustan Petroleum will supply 400,000 barrels of Iraqi oil to fill the nearly 7.5-million-barrels Vizag storage in the southern state of Andhra Pradesh, the sources said.. The UAE's Abu Dhabi National Oil Co. (ADNOC) has leased half of the nearly 11-million-barrel Mangalore storage, while the ISPRL has bought 4 million barrels of Saudi oil for 18.5-million-barrel Padur storage.. Indian Oil Corp. will divert 2 million barrels of Saudi oil and 5.7 million barrels of ADNOC oil, they said.. Pending final agreements with ADNOC and Saudi Aramco, India decided to help state refiners, one of the sources said.. "It is cheaper to divert the cargoes rather than keeping them floating . . . it is a win-win situation for all,"