US Crude Oil Imports Rise in January
In January, the US became the only major nation from which crude imports to India increased, with a rise of 3.4 times in value and 4 times in volume, according to official data.
Changes in Crude Oil Sources
- US imports rose significantly as imports from Russia and West Asian countries like Iraq, Saudi Arabia, and Kuwait decreased.
- Overall crude oil imports fell by 16.3% on a year-on-year basis.
Impact of Sanctions on Russian Imports
- Crude imports from Russia decreased for the second consecutive month, coinciding with the announcement of the latest US sanctions under former President.
- Despite being the largest source of oil for India (35% of imports), Russian crude imports fell by 19.35% to $3.61 billion in January.
- Imports had decreased by 18.48% in December, indicating a declining trend even before the new sanctions.
Trends in Other Major Import Sources
- Crude inflows from the US experienced the highest increase among major source nations, rising by 15% in the April–January period of 2024–25.
- Iraq and Saudi Arabia sold 9.69% and 10.78% less oil to India, respectively, and their import volumes decreased by 3.04% and 2.61%.
Shifting Supplies and Sanctions
The January data suggests a shift in demand to other sources even before US sanctions were imposed, showcasing adaptability in sourcing crude.
The Biden administration unveiled a comprehensive package of sanctions against Russia, targeting oil producers, tankers, intermediaries, traders, and ports.
- The US Treasury sanctioned Gazprom Neft, Surgutneftegas, and 183 vessels that transported Russian oil, affecting India's crude supplies.
Indian importers have since sought alternative arrangements, though global oil market volatility has posed challenges.