Middle Eastern oil producers, including Saudi Arabia, Iraq, and Kuwait, will increase crude oil shipments to India in December. This strategic move allows the Organization of the Petroleum Exporting Countries (OPEC) members to reclaim market share as Indian refiners pivot from Russian supplies due to tightening Western sanctions.

The shift follows a pause in purchases from Russia by many Indian refiners after the United States (US), the European Union (EU), and the United Kingdom (UK) imposed fresh sanctions on top Russian producers, including Rosneft and Lukoil, last month. The sanctions disrupted typical trade flows, prompting buyers in the world’s third-largest oil consumer and importer to seek alternative suppliers.

Indian refiners have received full crude allocations from Saudi Arabia and Iraq for December, in line with their requests. Furthermore, one refiner is slated to receive a higher monthly supply from Iraq’s State Organization for Marketing of Oil (SOMO) compared to November, while Saudi Aramco has similarly raised deliveries to another Indian refiner. Kuwait Petroleum (KPC) is also ramping up supplies to Indian buyers in November and December.

The increase in supply is supported by the reduction of official selling prices (OSPs) by both Saudi Aramco and SOMO, making Middle Eastern crude more financially attractive to Indian buyers. This ample oil availability has allowed Indian refiners to expand spot purchases from the Middle East, Iraq, and the US to secure steady fuel supplies.

Saudi Aramco declined to comment, while SOMO did not immediately respond to requests for comment.