According to trade data released by Reuters, the United States surpassed Saudi Arabia as India’s 2nd Biggest Oil Supply in February, 2021. Iraq continues to be India’s Largest supplier despite a 23% decline in purchases to a five-month low of 867, 500 BPD (Barrels Per Day).
- India’s imports from America increased to 48% to a record 545, 300 BPD in February, 2021 accounting for 14% of India’s overall imports last month
- Saudi Arabia slipped to No.4 Position for the 1st time since January 2006. Nigeria rose to 3rd Position and UAE slipped to 5th Position.
- Totally, India shipped 3.92 million BPD of Oil in February, 2021 (decline of 18% from January).
Fact
India is World’s Third Largest Oil Importer & Consumer (after USA, China)
Position | Country |
|---|---|
| 1 | Iraq |
| 2 | USA |
| 3 | Nigeria |
| 4 | Saudi Arabia |
| 5 | UAE |
Reasons for rise of US
- The Crude oil supplied by US is relatively cheaper compared to oil supplied by OPEC (Organization of the Petroleum Exporting Countries +) and its allies
- OPEC has cut its oil productions in order to speed up oil market’s recovery from COVID-19 Pandemic. Saudi Arabia has opted for a voluntary extra 1 Million BPD output cut due to OPEC’s decision.
Key Points
- At present, India ships 84% of its crude needs and relies heavily on the Middle East.
- Middle East’s share of India’s overall imports declined to a 22-month low of about 52.7% while Africa’s rose to 15%.
- India is actively taking steps to diversify its crude oil sources.
Recent Related News:
i.On May 11, 2020, The ministry of petroleum and natural gas has set up a 6-member panel to review the existing Production Sharing Contracts (PSCs) due to the fall in crude oil prices and the COVID-19 lockdown.
About Reuters:
Reuters is an International News Organization owned by Thomson Reuters
President – Michael Friedenberg
Headquarters – London, United Kingdom
About Organization of the Petroleum Exporting Countries (OPEC):
13 Member Countries – Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, UAE & Venezuela.
Secretary General – HE Mohammad Sanusi Barkindo
Headquarters – Vienna, Austria
