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.
Washington said this month it would consider waivers for Iranian oil buyers such as India, although it said they would eventually have to halt imports from Iran, the third biggest oil producer in the Organization of the Petroleum Exporting Countries.
"Government has no business to interfere in the pricing mechanism of petroleum products".
A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Gulf, Iran, July 25, 2005.
Saudi Arabia, the world's largest oil producing nation, is preparing a slew of investments in India's energy sector.
"We have invested tens of billions of dollars to build spare capacity of 2-3 million barrels per day over years", he added.
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".
According to Refinitiv Eikon data, Iranian exports of crude oil have declined to 1.33 million bpd, a sharp contrast to April's 2.5 million bpd, before the U.S. withdrew from the Iranian accord amidst harsh criticism, and United States pressure on allies to cease purchases of Iranian-sourced crude appear to be working, dragging oil prices steadily higher on the higher timeframes.
Barrel prices have halted their recent decline as Iranian exports and Saudi tensions keep crude on the high side.
Indian insurers are not offering coverage policies for storage of Iranian oil, an Indian Oil Corp Ltd (IOC) official said, owing to impending U.S. sanctions on import of crude from Iran, which are expected to kick in on November 4.
When asked whether Russian Federation and Saudi Arabia had made a backroom deal to increase oil production, MbS was more tight-lipped, saying only that Saudi Arabia was "ready to supply any demand and any disappearing from Iran".
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.