US becomes India’s 2nd Biggest Oil Supplier overtaking Saudi Arabia; Iraq Tops


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).


India is World’s Third Largest Oil Importer & Consumer (after USA, China)



1 Iraq
3 Nigeria
4 Saudi Arabia

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

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