Middle Eastern oil producers Saudi Arabia, Iraq, and Kuwait will increase crude oil supplies to India in December. This move comes as Indian refiners seek alternatives to Russian barrels amid growing sanctions. The rise in Middle East oil shipments highlights the shifting dynamics in the global energy market.
Indian refiners have paused many purchases from Russia after the United States, Britain, and the European Union imposed sanctions on major Russian oil producers, including Rosneft and Lukoil. Consequently, OPEC producers are regaining market share in the world’s third-largest oil consumer and importer.
According to sources from four Indian refiners, the two largest OPEC producers, Saudi Arabia and Iraq, have allocated their full requested shipments for December. Additionally, at least one Indian refiner will receive a higher supply from Iraq compared with last month. Saudi Aramco has also increased deliveries to another refiner, according to sources.
Kuwait Petroleum is supplying more crude oil to Indian refiners in November and December, while Middle Eastern suppliers remain flush with oil. Refining sources noted that this availability enables buyers in India to access additional volumes at competitive rates.
Indian refiners are responding to both supply availability and lower official selling prices from Saudi Aramco and Iraq’s SOMO. These factors encourage refiners to diversify their imports and secure cost-effective crude for domestic consumption and exports.
The increase in Middle East oil shipments demonstrates how geopolitical developments directly impact global trade flows. Analysts say OPEC producers benefit as sanctions on Russia shift demand patterns toward the Gulf region. Moreover, India strengthens its energy security by sourcing from multiple partners.
Saudi Aramco declined to comment on supply volumes. Iraq’s state oil marketer SOMO did not immediately respond to requests for comment. Nevertheless, market watchers expect stable deliveries for the remainder of 2025, assuming sanctions on Russia continue to influence Indian buying patterns.
Looking forward, Indian refiners are likely to maintain flexible sourcing strategies while monitoring pricing trends from Middle Eastern suppliers. Meanwhile, OPEC countries will continue leveraging market share opportunities as geopolitical risks reshape global crude trade.
Overall, the December supply increases from Saudi Arabia, Iraq, and Kuwait underscore the strategic importance of Middle East oil in stabilizing India’s refining sector and ensuring uninterrupted crude imports.
