Saudi Arabia, Iraq, Kuwait to raise oil supplies to India
Saudi Arabia, Iraq and Kuwait will increase crude oil supplies to India in December as Indian refiners are looking for alternatives to supplies from Russia, reports Reuters on November 11th.
Indian refiners have paused purchases from Russia due to tighter Western sanctions. This has led to a rise in crude oil demand from the Middle East.
Last month, the UK, the US and the European Union designated Russian oil producers Rosneft and Lukoil, launching immediate trade disruptions as sanctions fears drove away buyers in India and China.
According to sources, Indian refiners have received allocations of oil in line with their requests from the two largest OPEC producers. At least one refiner will revive a higher monthly supply from Iraq in comparison to the previous month.
Saudi Aramco has also increased supplies to another refiner, according to a source. Meanwhile, Kuwait Petroleum is giving more crude to Indian refiners in November and December.
Reportedly, Indian refiners are also seeking more supply after Saudi Aramco and Iraq-based SOMO lowered selling prices.
It was reported on October 11th that Saudi Aramco halted expansion plans for three chemical projects due to weak oil prices, marking the latest example of delays to Saudi Arabia’s long-term projects as softer oil prices squeeze the country’s finances.
The oil company is holding back two joint venture projects at Yanbu on Saudi Arabia’s western Red Sea coast and Jubail in the Persian Gulf.
Meanwhile, Aramco continues to spend big on oil and gas production projects like the Jafurah natural gas field.
The National Energy Services Reunited Corp (NESR), a US-listed oilfield services company was given a multi billion-dollar “unconventional” contract from Saudi Aramco. The five-year contract involves completion services for the Jafurah field and other gas developments across Saudi Arabia.
The Jafurah development is one of the world’s biggest unconventional gas fields and is allegedly central to Saudi Arabia’s plan to increase domestic gas production and reduce dependence on fossil fuels.
Reuters, Maghrebi.org
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