The US is now the fourth largest supplier; India’s share of oil imports this year will be 8%
The US is now the fourth largest supplier; India’s share of oil imports this year will be 8%
India’s oil imports from the United States will rise 11% this year, officials said on Saturday, as the severely energy-starved Asian country seeks to secure supplies from producers around the world, including heavily sanctioned Russia. Is.
A surge in oil prices after Russia’s invasion of Ukraine last month threatens to fuel Indian inflation, swell public finances and hurt growth, when it was emerging from a pandemic-induced recession.
New Delhi is facing criticism from the West for its long-standing political and security ties with Moscow, with some saying engaging in trade with Russia would help finance its war. India has urged an end to the violence in Ukraine but refrained from voting against Russia.
Japanese Prime Minister Fumio Kishida said during his meeting with his Indian counterpart Narendra Modi on Saturday that he would encourage a unified approach on Ukraine.
India buys most of its oil from West Asia, but the United States has emerged as the fourth largest source and supplies will increase significantly this year, a government official with knowledge of the matter told Reuters.
Iraq supplies 23% of India’s oil, followed by Saudi Arabia with 18% and the United Arab Emirates with 11%. The official, who spoke on condition of anonymity in line with government policy, said the US share of the Indian market will increase to 8% this year.
Russia has been a minor player in the Indian market but has been offering discounted oil to cushion the blow of widespread sanctions imposed by the United States and other countries since the February 24 invasion.
The country’s top refiner Indian Oil Corp recently ordered 3 million barrels of Russian oil through a tender, while Hindustan Petroleum Corp has booked 2 million barrels for May loading.
Another government official defended the decision to buy from Russia, saying India welcomes competitive offers for oil sales, including from Moscow, especially when global prices have jumped.
The second official said that European countries continue to import Russian oil and gas and India cannot be stopped from doing the same.
Western sanctions have carved out a way to avoid any impact on energy imports from Moscow, and the Russian banks that process payments for these sales remain on the SWIFT network, this official said.
The official said India’s legitimate energy transactions should not be politicised. “Countries with oil self-sufficiency or those importing themselves from Russia cannot credibly advocate restrictive trade.”