Saudi Arabia and Iraq have moved swiftly to fill the gap left by reduced Russian crude imports, allocating full-term oil supplies to Indian refiners for December — and even offering additional volumes to meet the country’s surging demand.
According to industry sources, both Middle Eastern producers confirmed full contract allocations for next month, signaling a strategic effort to strengthen energy ties with New Delhi following India’s sharp cutback in Russian oil purchases amid tightening Western sanctions.
India, the world’s third-largest oil importer, had become one of Moscow’s biggest buyers since 2022. But recent U.S. and European measures targeting shipping and payment systems have made Russian oil transactions increasingly complex.
“Saudi Aramco and Iraq’s SOMO have not only met all contracted volumes but also offered extra barrels,” one refinery official told reporters, describing the move as “a timely show of reliability amid uncertain market conditions.”
Energy analysts say the shift could recalibrate global crude flows, with Middle Eastern suppliers reclaiming market share lost to discounted Russian crude over the past two years.
The offers from Riyadh and Baghdad also underscore a renewed competition for India’s energy market — one of the few showing steady demand growth.
“India’s diversification strategy is working,” said an energy analyst based in Singapore. “With sanctions squeezing Russian flows, Gulf producers are eager to reaffirm their dominance in Asia’s fastest-growing oil economy.”
December’s allocations mark the latest sign of deepening cooperation between India and its traditional Middle Eastern partners — a relationship once again taking center stage in the global energy chessboard.
Source: Currentrep
