Change in India’s oil imports
A big and important change is being seen in the world of India’s oil import. Russian crude oil, which had been the first choice for Indian refineries for some time now, seems to be lagging behind. To take its place, India’s old and trusted allies i.e. the countries of the Middle East have once again come forward. According to reports, Saudi Arabia, Iraq and Kuwait have increased the supply of crude oil to India for the month of December. This step has been taken at a time when Indian refineries are hesitant in buying oil from Russia due to strict sanctions from western countries.
tight grip on russia
The root of this entire change lies in the new sanctions imposed on Russia by Western countries. Only last month, America, Britain and the European Union had tightened the noose on Russia’s big oil companies Rosneft and Lukoil. As soon as these restrictions were implemented, there were disruptions in trade and buyers from India and China also became afraid that they might fall prey to these restrictions. To avoid this risk, Indian refineries have decided to stop purchasing oil from Russia for the time being.
Middle East opened treasure for India
As Indian refineries moved away from Russia, they immediately turned to Middle East producers. Sources at four Indian refineries have confirmed that OPEC’s two largest producers, Saudi Arabia and Iraq, have fully agreed to India’s request. That is, as much oil as India asked for has been allotted to them.
According to sources, Iraq has agreed to supply more oil to at least one refinery than last month. Saudi Aramco has also increased the supply of another refinery. Apart from these, Kuwait Petroleum is also supplying more crude oil to India in November and December.
Double benefit of low prices
OPEC (Organization of Petroleum Exporting Countries) seems to be benefiting greatly from this new development. India is the world’s third largest oil consumer and importer, and getting their market back here is a big win for these countries. A refinery source also said that there is currently no shortage of oil from Middle East suppliers and they are ready to bring it to the market. Another big reason for India’s interest is oil prices. Recently Saudi Aramco and Iraq’s state oil marketer SOMO had cut their official selling prices. Because of this also this deal has become more beneficial for Indian refineries.