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OPEC Countries Losing Top Spot to African Counterparts as Oil Supplier to India

Saudi Arabia lost its spot last month as India's top oil supplier to Nigeria for the first time in at least four years, according to ship tracking data compiled by Reuters, as the world's top crude exporter struggles to maintain market share in Asia.

Source:  ET

SNP Insights

With plummet in spot market price, long term contract signed with OPEC countries are losing their attractiveness. Supply of African countries like Nigeria has seen a rise of 26% in last quarter, as they are supplying on spot rate. So in order to retain the market share in country like India, OPEC countries might consider upon scrapping the ‘Asian Premium’ or renegotiation of price term on ‘long term crude oil supply contract’, which will enhance current account balance of major oil importers like India. 

Source: SNP Infra Research