Retail fuel prices in India, the world's third biggest oil consumer and importer, recently touched record levels due to high oil prices and a weakening rupee, leading to protests across the country.
Saudi Arabia is committed to meeting India's rising oil demand and is the "shock absorber" for supply disruptions in the oil market, Energy Minister Khalid al-Falih said on Monday.
Investors are concerned that Saudi Arabia could use oil supply to retaliate against its critics.
United States crude inventories fell by 2.1 million barrels last week, compared with analyst expectations for a build of 2.2 million barrels, American Petroleum Institute data showed after Tuesday's settlement.
Saudi Arabia has been at the forefront of oil news in recent weeks-almost neck and neck with Iran-as traders try to anticipate just how much spare oil production capacity Saudi Arabia has-if any-and if that spare capacity, whether it's zero or a million barrels per day, will be sufficient to offset any losses sustained from Iran and Venezuela.
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Falih said oil prices would "easily be at the three digit range had it not been for the extra effort the kingdom has done over many years by investing in capacity and then unleashing that capacity, delivering barrels over last few months, reversing inventory draw down".
At the same conference, India's PM Narendra Modi also sat down with ministers and chief executives of oil companies and sought a review of payment terms for crude oil supplies. The U.S. administration has been pushing its allies to cut Iranian oil imports and encouraging Saudi Arabia, other OPEC states and Russian Federation to pump more oil to meet any shortfall.
Pradhan had last week said two state-owned oil refiners have booked import of 1.25 million tonne (MT) of crude oil from Iran in November.
He said the developments show that the United States "will definitely not be able to cut Iran's oil exports to zero" - the goal set by USA officials - when sanctions targeting the oil sector go into effect on November 5.
Saudi Aramco has an initial pact to take a 25 percent stake in the planned 1.2 million bpd West Coast refinery.