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New Delhi: Following the US sanctions on Russian firms - Rosneft and Lukoil, India is expected to raise its oil purchase from Saudi Arabia in December 2025, Bloomberg reported. Traders are worried as to how India would overcome a shortfall of up to 1.2 million barrels a day.
In a surprising move, China has reduced its oil purchase from Saudi Arabia as it has planned some refinery maintenance at a state-owned company and increased its crude oil purchases from other countries such as the United States.
Many Asian nations, including India, Japan, South Korea and Taiwan have demanded at least 18 to 20 million more barrels of oil from Saudi for December compared with November. Bloomberg quoted sources saying that the Asian countries are attracted towards Saudi Saudi’s attractive selling prices. Sales to China went down nearly four million barrels.
The sources told the media house that New Delhi’s crude purchases from Saudi jumped around 5 million barrels month-on-month. Araco fulfilled the purchase request from India.
However, despite increasing the oil purchase from Saudi, India will find it very difficult to fill the gap left by Russian oil after US pressure and sanctions.
One of the Indian refiners has reportedly maintained that it would continue to import Russian oil, as long as supplies are from non-sanctioned sellers.
Meanwhile, Saudi Arabia is leading the Organization of the Petroleum Exporting Countries (OPEC) and its allies in increasing the supply to regain market share.
Earlier this month, a Reuters report mentioned that Saudi Arabia, Iraq and Kuwait have decided to increase crude oil supplies to India in December following the sanctions on Russia oil companies.
The US, European Union and Britain in October imposed sanctions on Russian top oil producers Rosneft and Lukoil triggering immediate trade disruptions.
The rise in Middle East crude demand comes as many Indian refiners pause purchases from Russia due to tightening Western sanctions, enabling OPEC producers to regain market share in the world's third-largest oil consumer and importer.
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