India's oil import dynamics are shifting rapidly, with significant increases in imports from the United States and Russia.
Here are the key points to understand what's happening in India's oil trade:
US oil exports to India surge:
In January 2025, the United States became the fifth-largest oil supplier to India, with imports rising from 70,600 barrels per day (bpd) in December 2024 to 218,400 bpd, according to Reuters.
This marks a significant jump as India seeks to boost its U.S. energy purchases, aiming for $25 billion in 2025 compared to $15 billion the previous year.
Russia Remains top supplier:
Russia continues to be India's largest oil supplier, with imports increasing 4.3% in January to 1.58 million bpd.
Despite global sanctions, India has maintained its purchase of discounted Russian crude, though this may slow in the coming months due to U.S. sanctions on companies and shipping involved in Russian oil trade.
Middle East oil imports rise:
India's oil imports from the Middle East grew by 6.5% in January, reaching 2.7 million bpd, with Iraq, Saudi Arabia, and the UAE remaining major suppliers.
However, the region's share of India's total crude imports rose to a 27-month high, now accounting for 53% of the total.
Shifting Trade Dynamics:
India's growing reliance on non-Russian oil reflects concerns over U.S. sanctions, prompting refiners to turn to other sources like the U.S. and the Middle East.
The shift in sourcing strategies highlights how global sanctions on Russia are reshaping India's energy import strategies.
Overall Oil Imports Up:
India's total oil imports for the fiscal year increased by 4.5%, averaging 4.8 million bpd over the first 10 months of 2024.
India’s oil import strategy is evolving, with increasing reliance on U.S. exports and ongoing strong ties with Russia and the Middle East.
For those in the oil industry, understanding these shifts is crucial for navigating the future of global oil trade, which is being influenced by geopolitics, sanctions, and changing market dynamics.
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