Crude oil markets welcome warming releations between India and Saudi Arabia


India and Saudi Arabia repair ties

 

With a series of tweets – more than 5 – Dharmendra Pradhan, the Indian oil minister thanked Saudi Arabia and other Gulf nations for supplying India with LMO, liquid medical oxygen, in its hour of need.

The Gulf nations are going to continue to supply the LMO for the next six months, according to the minister.

In reciprocating the gesture, especially from Saudi Arabia, India’s oil refineries have restored their oil imports for June – and beyond – reversing the decision to look for ‘alternative sources’ when the relationship between the two countries deteriorated over the OPEC+ supply cut.

The acrimony hit a peak when Mr Pradhan and his Saudi counterpart had a public spat over it; India cut a third of its oil imports from Saudi Arabia, dealing a significant blow to Saudi crude oil imports; being the third largest oil importer of the world that relies on the Middle East for 80% of its oil needs, it was a decisive step.

On a positive note, the two countries clearly let bygones be bygones;

Crude oil markets breathed a sigh of relief on Saturday with the development. Although the local demand in India has plummeted for obvious reasons, the future orders will not be hampered in light of warming relations.

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