As the world’s third-largest oil importer and consumer, India is expanding its energy trade with the U.S., aiming to increase purchases to $25 billion from $15 billion in the previous year. Meanwhile, imports from Russia, India’s top oil supplier, rose by 4.3 per cent last month to 1.58 million bpd.

However, Russian oil imports are expected to decline in the coming months as Indian refiners adjust to new restrictions. Purchases will be limited to supplies from companies and shipping firms that remain unaffected by US sanctions. The widening of sanctions on Moscow by Western nations has disrupted global oil trade, pushing buyers of discounted Russian crude to seek alternative procurement strategies.

India’s crude imports from the Middle East also rose by 6.5 per cent in January, reaching 2.7 million bpd. Iraq maintained its position as India's second-largest oil supplier, followed by Saudi Arabia and the United Arab Emirates. In response to anticipated U.S. sanctions, Indian refiners increased purchases from non-Russian sources ahead of the official announcement.

The share of Middle Eastern crude in India’s total oil imports, which stood at approximately 5.1 million bpd in January, surged to a 27-month high of 53 per cent. Meanwhile, Russia’s share remained largely unchanged from December.

News source: CNBC TV18