US becomes India’s fifth largest oil supplier

India’s oil imports from the US rose sharply in January from December, making the world’s largest economy the fifth largest oil supplier to India. According to news agency Reuters, India shipped 218,400 barrels per day (bpd) of crude oil from the US compared to 70,600 bpd in December 2024.

Refiners in India, the world’s third-biggest oil importer and consumer, are bracing for higher energy imports from the US. India looks to boost its energy purchases from the US to $25 billion from $15 billion last year. India’s imports from its top oil supplier, Russia, rose 4.3 per cent last month to 1.58 million bpd.

India’s purchase of Russian oil will likely fall in the coming months, as refiners would buy it only if companies and ships that have not been sanctioned supply it. Widened sanctions on Moscow by Western countries, including the United States, have roiled global oil trade and forced buyers of discounted Russian crude to find new ways to maintain their purchases.

According to the report, imports of Middle Eastern oil in January rose by 6.5 per cent to 2.7 million bpd. Iraq continued to be 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 about the US sanctions weeks before they were announced. The share of Middle Eastern oil in India’s about 5.1 million bpd crude imports in January rose to a 27-month high of about 53 per cent, while Russia’s imports remained stagnant from December. 

According to reports, in the first 10 months of the current fiscal year from April 1, 2024, India’s oil imports rose 4.5 per cent to an average of 4.8 million bpd. Crude oil prices were last up one per cent and on course for a three-day gain on Thursday after data showed a drawdown in gasoline and distillate in the US. Worries about supply disruptions in Russia supported prices. Brent futures were up 75 cents, or 0.99 per cent, at $76.79 per barrel.