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Indian Refineries to Gain Marginally, with Probable Cut in Crude Oil Price of Saudi Arabia

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Reliance Industries and Essar Oil are set to gain from a likely cut in prices for medium and heavy grades of crude oil sold by Saudi Arabia to Asia, according to industry watchers. 
Saudi Arabia, traditionally the top exporter of crude to India, is reported to be considering a cut in prices of the medium and heavy grades of crude used by complex refiners, while leaving price of its most popular export, light crude, unchanged. 
Source:  ET

SNP Insights

Demand decline by 7.9% from China & subsequent drop in demand from India has resulted in huge market losses for Saudi Arabia, So probable move by the largest crude exporter to drop the prices, will benefit complex refineries of India, as product crack margin will improve. This may act as an substantial impetus towards $ 144 Bn petrochemical Industry of India.

Source: SNP Infra Research