Middle Eastern producers Saudi Arabia and Iraq have allocated full term crude volumes to Indian refiners for December, while also offering more under optional contracts, sources at three Indian refiners said on Tuesday.
Growing demand from Indian suppliers for Middle East crude came after they paused Russian oil buying due to tightening Western sanctions.
Britain, European Union and United States last month designated Russia top oil producers, Rosneft and Lukoil, triggering immediate trade disruptions as sanctions fears drove away buyers in India and China.
The Indian refiners have received the full allocation of oil in line with their requests from the two largest OPEC producers, the sources said. At least one refiner will get a higher monthly supply from Iraq compared with the previous month, the sources added.
Saudi Aramco and Iraq’s state oil marketer SOMO did not immediately respond to requests for comments.
Kuwait Petroleum is also supplying more crude to Indian refiners in November and December, another two sources said.
One of the refining sources said Middle Eastern suppliers are flush with oil, and the suppliers are providing access to that as well.
Indian refiners are also seeking more supply after Saudi Aramco and SOMO lowered official selling prices.
Since the latest round of sanctions, Indian refiners have snapped up crude from the Middle East, Iraq and the United States in the spot market.
