Overview of India’s Oil Imports: Middle East, Russia, and the US
Recent data highlights a notable uptick in India’s oil imports from the Middle East, which rose by 6.5% in January, reaching an average of 2.7 million barrels per day (bpd). Iraq has solidified its position as India’s second-largest oil supplier, exporting approximately 1.1 million bpd, following Saudi Arabia and the United Arab Emirates.
Shift Away from Russian Oil
Indian refineries have pivoted away from Russian crude in light of government warnings regarding potential U.S. sanctions announced several weeks prior. Despite this shift, imports from Russia, the leading oil supplier to India, still increased by 4.3% to 1.58 million bpd in January, maintaining its top position among suppliers.
Future Outlook on Russian Oil Purchases
Looking ahead, it is likely that Indian purchases of Russian oil will decline. Refineries are expected to procure this crude only from companies and shipping entities that are not subjected to U.S. sanctions, complicating the supply chain. The strong sanctions imposed on Russia by Western nations, notably the United States, have created confusion within the global oil trade, prompting buyers to explore alternatives for procuring Russian crude at reduced prices.
Rising Imports from the United States
In contrast, data illustrates a significant surge in India’s crude oil imports from the United States, which jumped to 218,400 barrels per day in January from 70,600 bpd in December. Consequently, the U.S. emerged as the fifth-largest oil supplier to India.
India’s Strategic Energy Goals
As the third-largest oil importer and consumer worldwide, Indian refineries are gearing up to enhance energy imports from Washington. New Delhi aims to escalate its energy purchases from the U.S. from $15 billion last year to an ambitious $25 billion going forward.
In summary, India’s oil procurement strategy is evolving in response to global political pressures, escalating its focus on diverse sources, and particularly strengthening ties with U.S. energy suppliers amidst a shifting geopolitical landscape.
