Indian refiners may take less Saudi oil next year if contract terms are ‘unfavourable’

Indian state refiners may seek a smaller purchase deal for Saudi oil next year to pressure the kingdom into altering some of the contractual terms ‘unfavourable’ to the buyer, a person with direct knowledge of the matter said.

“We can reduce the quantity in term contract next year if terms are not favourable to us,” the person said. Saudi Arabia is one of the top suppliers to India and most state and private Indian refiners have depended on it for supplies for decades.

Refiners, however, feel some of the terms of the Saudi annual deals are unfavourable to India and must change quickly. “Contract should