Who Was India’s Largest Oil Supplier in 2023?
As the curtain falls on 2023, India's imports of crude oil serve as a reminder of the complex network of international alliances that support the country's energy needs. Sputnik explores the five nations shaping the import landscape of India.
SputnikIn India's energy mosaic, the narrative of crude oil imports in 2023 resonates as a symphony of resilience, adaptation and strategic recalibration.
As the year draws its curtain, it unveils a tableau of dynamic shifts in the country's import patterns, where each brushstroke tells a story of geopolitical manoeuvres, market volatilities and the quest for sustainable energy horizons.
India's journey through the corridors of crude oil imports stands as a testament to its unwavering pursuit of energy security, diplomatic finesse and a visionary transition towards a greener future against a backdrop of fluctuating oil prices, geopolitical tremors and an urgent call for environmental stewardship.
Among India's numerous crude oil suppliers five nations stood out, shaping the import landscape and influencing the country's energy security strategies.
Russia: Pillar of Stability
India and Russia have long maintained cordial, mutually beneficial relations. As refiners reduced their purchases from the Middle East, Moscow became India's leading supplier of oil as the share of imports from Russia increased to about two-fifths in the first half of the fiscal year 2023–2024, according to industry data.
Amidst Western Sanctions, India, the
third-largest oil user and importer in the world, has emerged as the main buyer of the discounted
Russian seaborne oil.Likewise, from April to September, or the first half of fiscal 2023–2024, India imported 1.76 million barrels per day (BPD) on average of Russian oil, more than double the roughly 780,000 BPD imported during the same period last year, according to tanker data reports Media.
According to Nikolai Tokarev, the president of the Russian state oil corporation Transneft, 70 million tonnes of Russian oil were shipped to India this year — almost twice as much as in 2022.
The quantity of oil supplied by Russia to India increased by more than 40 percent, underscoring the closer relationship between the two nations.
Iraq: Strengthening Bilateral Trade
Iraq remained an important source of crude oil for India in 2023. With Iraq's oil exports being essential to meeting India's energy needs, the two countries bilateral ties became even closer.
Around 1 million barrels of oil are expected to be imported from Iraq in November, up from about 0.8 million barrels in October. Iraq is the second-largest crude oil exporter to India, after Russia. India purchased 839,000 barrels from Iraq per day in May 2023 as opposed to 828,000 barrels per day in April.
Indian Oil Minister Hardeep Singh Puri stated at the 18th India-Iraq Joint Commission for Economic & Technical Cooperation that “Iraq, one of the world's largest oil producers, and India, a major oil consumer, have a lot in common. Iraq has been India's main source of crude oil since 2017. Approximately one million barrels of crude oil are already purchased by India from Iraq each day.”
“India is Iraq's second-largest trading partner, with a yearly trade of $37 billion, and places great value on a multifaceted and all-encompassing alliance. We discussed ways to ramp this up”, he added.
Saudi Arabia: Long-Standing Relations
Saudi Arabia retained its position as
India's leading supplier of crude oil in 2023. The two countries'
historical and geopolitical connections remain robust as India still heavily depends on Saudi Arabia to meet its energy needs.
India increased its purchases of crude oil from Saudi Arabia in October to 924,000 barrels per day from 523,000 bpd, according to Vortexa statistics.
Meanwhile, India seeks to deepen its relationship with its
key oil supplier Saudi Arabia by including Aramco in its 6.5 million metric tonnes (MMT) planned strategic petroleum reserve (SPR) initiative, according to media reports.
India and Saudi Arabia in September inked a landmark comprehensive deal for energy-related cooperation and are anticipated to have closer linkages as a result of the MoU in the areas of renewable energy, energy efficiency, hydrogen, electricity and grid connections, natural gas, petroleum, strategic petroleum reserves, and energy security.
United Arab Emirates (UAE): Continued Partnership
The UAE continued to be a vital crude oil supplier to India in 2023. The UAE provided a wide variety of crude oil grades to satisfy
India's particular needs, and the two nations' alliance remained essential.
According to the Indian Commerce Department, India purchased $3.2 billion worth of crude oil from the UAE in the first half of the current fiscal year (FY24), compared to $9.35 billion during the same period last year.
Following talks between the two nations on the fringes of the current COP28 meeting in Dubai, media sources state that India is anticipated to increase its purchases of crude oil from the United Arab Emirates (UAE).
Nigeria: Emerging Collaboration
With almost 17 perecent of oil imports from the West African nation, India was by far the biggest buyer of crude from Nigeria.
Nigeria has secured investment promises of around $14 billion from many Indian corporations and the Indian government, marking a noteworthy advancement towards economic cooperation.
Prominent Indian corporations, such as Jindal Steel and Power have committed substantial investments in Nigeria. The business intends to invest $3 billion to lessen the country of West Africa's dependency on oil production.
Another Indian company, Indorama Corp, plans to invest an extra $8 billion in the expansion of its
current petrochemical plant located in Nigeria.