India’s Crude Oil Imports Analyzed
India’s demand for oil is getting stronger! In August, India bought more crude oil than it had in a long time, averaging 4.6 million barrels each day. This is good news for countries like Russia and Iraq, who are supplying much of India’s oil needs. It also shows India is adapting to changing trade situations.
Key Points
- India’s crude imports rose significantly in August (4.6 mb/d).
- Russia remains the top supplier (38% of imports).
- Iraq is second with 16% of total imports.
- Fuel oil decline drove product import decrease.
- Product exports increased sharply (1.4 mb/d).
- Net product exports jumped to 216 tb/d.
Crude Oil Imports in August
The main reason India bought more oil is because global trade rules have changed. Tariffs and sanctions are affecting how countries trade. Buyers are now choosing to buy from different places to avoid these issues. This resulted in a 168 tb/d increase in imports month-over-month.
Russia was the biggest supplier of crude oil to India in August, making up 38% of all imports. This was a little lower than the previous month, but still a large amount. Iraq was the second biggest supplier with 16%, followed closely by Saudi Arabia and the United Arab Emirates, each supplying around 14% of India’s needs.
India also buys oil products, like fuel oil and LPG. The amount of oil products imported fell by 51 tb/d because of a decline in fuel oil. However, the amount of LPG imported went up slightly. The overall trend was still downward.
Good news for India was that oil product exports went up dramatically. They increased by 156 tb/d, mainly due to higher sales of diesel and gasoline. This happened because Europe was sending more oil products out.
Because of these increased exports, India’s net product exports – the difference between what they sold and what they bought – rose sharply to 216 tb/d. This is a big change from just 10 tb/d the month before and 57 tb/d in August 2024.
India’s evolving oil trade patterns highlight the need for agile supply chain management and strategic sourcing decisions.
