The RBI reiterated that it would maintain an accommodative stance as long as necessary to revive economic growth.
A forecast by the International Energy Agency for slower global oil demand growth post-2025 also weighed on the market.
Traders may be taking profits on oil ahead of uncertainty around macro-economic data and US oil inventory reports.
A modest overshoot in recent inflation outruns is outweighed by downside risks to RBI's growth estimates.
US West Texas Intermediate (WTI) crude CLc1 had gained 16 cents or 0.3 per cent to USD 52.97 a barrel.
Saudi Aramco officials as a matter of policy do not comment on the kingdom’s monthly OSPs.
RBI Governor Shaktikanta Das also reinforced his dovish bias due to weak inflation and negative output gap.
India’s gasoil demand will rise by an average 5.3 pc per year through the 2025 fiscal year, said Nayara Energy's B Anand.
ATC is key to Saudi Aramco’s strategy as it expands its refining and petrochemical operations to boost global sales.
RBI has lowered the repo rate by 1.1 percentage points in 2019, the banks are yet to pass on the entire benefit to borrowers.