India's Strategic Energy Procurement Shift

In a significant shift in its energy procurement strategy, India has seen the United States overtake the UAE to become its fourth largest supplier of crude oil, with Russia continuing to dominate the top spot. This change reflects India's efforts to diversify its energy sources and strengthen bilateral trade relations.

Market Dynamics and Future Projections

According to Vortexa, an energy cargo tracking firm, India's imports of US crude doubled to 0.33 million barrels per day (mbd) in April. This surge is part of a broader strategy to address trade disparities and enhance energy cooperation between India and the US, with projections suggesting a potential increase in energy purchases from $15 billion to approximately $25 billion.

Global Suppliers' Share in India's Crude Imports

The latest figures reveal that the US now holds a 7.3% share of India's crude imports, surpassing the UAE's 6.4%. However, it still trails behind Saudi Arabia (10.4%), Iraq (19.1%), and Russia (37.8%). The increasing reliance on Russian oil is attributed to preferential pricing offered to Indian buyers, with private sector refineries like Reliance Industries and Nayara Energy being the primary beneficiaries.

OPEC+ and the Future of Oil Supply

The OPEC+ alliance, led by Saudi Arabia and Russia, plans to increase supply by approximately 400,000 barrels daily starting May, with a similar increment in June. This move is expected to bring Saudi Arabia back into the forefront of India's crude imports, leveraging its substantial spare production capacity.