Oil imports from America increased rapidly this year, becoming India’s 5th largest crude supplier

Washington: India’s oil imports from America increased rapidly in January, making the world’s largest economy India’s fifth largest crude supplier. According to Reuters, India has imported 218,400 barrels per day (bpd) of crude oil from the US in December 2024 compared to 70,600 bpd.

Refiners in India, the world’s third-largest oil importer and consumer, are set to import more from the US. India wants to increase its energy purchases from the US to $25 billion from $15 billion last year. India’s imports from its top supplier Russia rose 4.3 percent to 1.58 million bpd last month.

Russian oil purchases expected to fall
India’s purchases of Russian oil are likely to fall in the coming months as refiners will buy it only if companies and ships that have not been sanctioned supply it. Sweeping sanctions on Russia by Western countries, including the US, have halted global oil trade and forced buyers of discounted Russian crude to find new ways to maintain their purchases.

Iraq India’s second-largest supplier
Oil imports from the Middle East rose 6.5 percent to 2.7 million bpd in January, according to reports. Iraq remained India’s second-largest oil supplier, followed by Saudi Arabia and the United Arab Emirates (UAE).

Last month, Indian refiners turned to non-Russian oil after the government warned them of US sanctions weeks before they were announced. The share of Middle East oil in India’s crude imports of about 5.1 million bpd in January rose to a 27-month high of nearly 53 per cent, while imports from Russia remained steady since December.

India’s oil imports jump 4.5 per cent
India’s oil imports rose 4.5 per cent to average 4.8 million bpd in the first 10 months of the current fiscal year starting April 1, 2024. Crude oil prices rose one per cent on Thursday and extended a three-day rally after data showed a fall in US gasoline and distillates. Concerns about supply disruptions in Russia supported prices. Brent futures were up 75 cents, or 0.99 per cent, at $76.79 a barrel.