Saudis Defending Coveted India Oil Market With Reliance Deal - Bloomberg

Saudis Defending Coveted India Oil Market With Reliance Deal - Bloomberg:

Saudi Aramco’s proposed purchase of part of India’s Reliance Industries Ltd. will allow it to regain its grip on the world’s fastest-growing oil market where suppliers including the U.S. and Russia are making inroads.

Aramco’s plan to buy 20% of the oil-to-chemicals business of Reliance -- which includes the world’s biggest refining complex at Jamnagar on India’s west coast -- comes with an assurance to buy half a million barrels a day of the kingdom’s crude on a long-term basis. That’s around 25 million tons a year and will allow Saudi Arabia to easily reclaim the top supplier spot from Iraq.

Asia has traditionally bought the bulk of its oil from the Middle East, but that’s changing as the U.S. ramps up shale exports, Russia looks for new customers and Saudi Arabia leads OPEC efforts to curb production to prop up prices. American sanctions on Iran and Venezuela are also taking barrels off the market and providing an opening for new suppliers.