NEW DELHI: Major Middle Eastern oil producers — Saudi Arabia, Iraq, and Kuwait — are set to increase crude oil supplies to India in December, as Indian refiners pivot away from Russian barrels amid growing Western sanctions, refinery sources said on Tuesday.
The shift marks a resurgence for OPEC suppliers in India, the world’s third-largest oil consumer and importer, as refiners seek stable supply sources following recent trade disruptions involving Russia.
According to officials from four Indian refining companies, the refiners have received full crude allocations in line with their requests from Saudi Arabia and Iraq, while at least one refiner has been granted a higher-than-usual monthly supply from Iraq compared to November.
Saudi Aramco has also raised its oil deliveries to another Indian refiner, one source confirmed. While Aramco declined to comment, Iraq’s State Oil Marketing Organization (SOMO) did not immediately respond to media queries.
Meanwhile, Kuwait Petroleum Corporation (KPC) has also increased its crude exports to Indian refiners for November and December, two additional sources reported.
Sanctions Reshape Global Trade Flows
The adjustments come after the United States, European Union, and the United Kingdom expanded sanctions last month on Russian energy giants Rosneft and Lukoil, sparking renewed caution among Asian buyers. The restrictions have led to supply disruptions and hesitation among Indian and Chinese refiners, who had become major importers of discounted Russian crude following the Ukraine conflict.
“Middle Eastern suppliers are flush with oil, and they’re offering attractive access to secure long-term contracts,” one Indian refinery source said.
Competitive Pricing Drives Demand
Industry officials added that Saudi Aramco and SOMO recently lowered their official selling prices (OSPs), further boosting demand from Indian refiners seeking cost-effective supplies. The combination of competitive pricing and geopolitical uncertainty around Russian oil has helped Middle Eastern producers reclaim market share lost over the past two years.
Analysts say the trend underscores how India’s diversified sourcing strategy continues to evolve in response to shifting global energy dynamics, balancing economic needs with geopolitical risks.
By Reuters
