US takes up Saudi Arabia position, becomes India’s second-biggest oil supplier

Washington, DC 15: Overtaking Saudi Arabia, United States has become the second-biggest oil supplier of India. This comes after the refiners boosted cheaper U.S. crude purchases to record levels to offset the Organisation of Petroleum Exporting Countries and its allies (OPEC+) supply cuts. However, Iraq has continued to remain on the top oil seller to India.

 

The switch in supplies was triggered by the lower U.S. crude demand. It also coincided with the voluntary extra 1 million BPD output cut by Saudi Arabia in line with the agreement of the OPEC+ to maintain the lower production.

 

It should be noted that India is the third-biggest oil importer and consumer in the world. The country had repeatedly been calling on the major oil producers to ease the supply curbs and aid the global economic recovery.

 

The United States had increased to 48 percent to stand at a record of 545,300 barrels per day (BPD) in February 2021. This accounted for 14 percent of the overall imports of India in February. On the other hand, the import of India from Saudi Arabia decreased by 42 percent from January 2021. It fell to a decade-low of 445,200 BPD. As a result, Saudi Arabia, which has consistently been one of the top two suppliers of oil to India, fell to position 4 for the first time since 2006.