India’s crude oil imports from Iraq surged in January, reaching 1.1 million barrels per day (bpd), according to trade data reported by Shafaq News. This increase came as shipments from all of India’s major oil suppliers rose last month, maintaining Iraq as the country’s second-largest oil supplier. India is the world’s third-largest oil importer.
Russian crude oil imports also grew in January, despite new U.S. sanctions on Russia’s oil trade, which took effect on January 10. These sanctions disrupted global oil trade, as buyers scrambled to secure unsanctioned vessels. Indian imports of Russian crude rose by 4.3%, reaching 1.58 million bpd, keeping Russia in the top spot as India’s largest supplier.
Saudi Arabia and the United Arab Emirates (UAE) were the third and fourth largest suppliers of oil to India. The United States moved into fifth place, with India importing 218,400 bpd of American crude last month—more than tripling December’s imports of 70,600 bpd.
Looking ahead, India plans to significantly increase its U.S. crude oil purchases. At the same time, its imports of Russian oil may stabilize until the situation around the sanctions settles. India, which has a large trade surplus with the U.S., has expressed its intention to buy more American oil and liquefied natural gas (LNG) to address the surplus and avoid potential tariffs under President Donald Trump.
India’s Foreign Secretary Vikram Misri stated last week that the country could increase its oil and gas imports from the U.S. to $25 billion, up from approximately $15 billion. Although India imported a large amount of U.S. crude in 2021, its imports declined afterward as refiners turned to cheap Russian oil, which Western countries largely avoided.
However, since the implementation of U.S. sanctions on Russian oil, India has been working to reorganize its oil trading operations, including traders, insurers, and vessel owners. The goal is to continue importing affordable Russian oil while avoiding violations of U.S. sanctions on Russian exports.
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