After Iraq Now the United States of America has become the second biggest oil suppliers of India by overtaking Saudi Arabia. This shift comes after the refiners boosted cheaper USA crude purchases to a record levels in order to offset the OPEC+ (Organization of the Petroleum Exporting Countries) supply cuts.

This switch in supplies were triggered by the lower USA crude demand. It was also coincided with the voluntary extra 1 million bpd output cut by Saudi Arabia in line with the agreement of OPEC and its allies (OPEC+) so as to maintain the lower production.

Oil import by India

Indian oil import from the world’s top producer, USA had increased to 48% to stand at a record of 545,300 barrels per day (bpd) in February 2021.  This accounted for 14% of the overall imports of India in February. On the flip side, the import of India from Saudi Arabia decreased by 42% from January 2021. It fell down to a decade-low of 445,200 bpd. As a result, Saudi Arabia, which has consistently been one of top two suppliers of oil to India, fell down to position 4 for the first time since 2006.

Backdrop

India is the third biggest oil importer and consumer around the world. The country had repeatedly been calling on the major oil producers in order to ease the supply curbs and aid the global economic recovery. India had also pointed to Saudi Arabia’s voluntary cuts in contributing to increase in the price of oil globally.

Top seller

According to the data, Iraq continued to be the top oil seller to India. The top position was maintained even though the oil purchases have declined by 23% in 5-month low to 867,500 bpd. Iraq has also cut the annual supplies of oil to Indian refiners by 20% in 2021 to meet the obligations under the OPEC’s production deal.

OPEC Countries

  • Algeria
  • Angola
  • Congo
  • Equatorial Guinea
  • Gabon
  • Iran
  • Iraq
  • Kuwait
  • Libya
  • Nigeria
  • Saudi Arabia
  • UAE
  • Venezuela

OPEC+ Countries

  • Azerbaijan
  • Russia
  • Bahrain
  • Brunei
  • Kazakhstan
  • Malaysia
  • Mexico
  • Oman
  • South Sudan
  • Sudan

US Becomes Second Biggest Oil Supplier of India US Becomes Second Biggest Oil Supplier of India