The United States has surpassed Saudi Arabia to become
India's second largest oil supplier.
This shift came after refineries increased their purchases
of cheaper U.S. crude oil to record levels to offset OPEC+ production
The shift in supply was triggered by
lower crude oil demand in the United States.
It coincided that Saudi Arabia
voluntarily cut its output by 1 million barrels per day in accordance
with an agreement between the Organization of Petroleum Exporting Countries and
its allies (OPEC+) to maintain a low output.
India’s oil imports from the United
States, the world’s largest oil producer, increased to 48%, reaching a
record 545,300 barrels per day (barrels/day) in February 2021, accounting for
14% of India’s total imports in February.
On the other hand, since January 2021,
India’s imports from Saudi Arabia have decreased by 42%, falling to a 10-year low
of 445,200 barrels per day.
As a result, Saudi Arabia, which has
always been one of India’s two largest oil suppliers, fell to fourth place for
the first time since 2006.
India is the world's third largest oil importer and
The country has repeatedly called on major oil producers to
ease supply constraints and help the global economy recover.
India also pointed to Saudi Arabia's voluntary cuts to
promote the rise of global oil prices.
According to data, Iraq is still India's
largest oil seller.
Even though oil purchases fell by 23% from a five-month low
to 867,500 bpd, they maintained their highest position.
Iraq has also cut its annual oil supply to Indian refineries
by 20% in 2021 to fulfill its obligations under the OPEC production agreement.