Iraq becomes India's top oil supplier, overtakes S Arabia

The Dollar Business Bureau

Iraq has become the biggest supplier of crude oil to India overtaking Saudi Arabia. On the other hand, Iran has become the fourth largest exporter after lifting of the sanctions. 

Iraq supplied around 11 million tonnes of crude to India during the April-June period which is more than the 10 million tonnes procured from Saudi Arabia Dharmendra Pradhan, Minister for Petroleum and Natural Gas said on Monday.

Saudi Arabia has been the biggest supplier of crude oil to India, exporting 35 million tonnes in 2014-15 and 40.04 million tonnes in 2015-16. 

The second largest exporter of crude oil to India in 2010-11 after Saudi Arabia, Iran has been downgraded to the seventh spot in 2013-14 and 2014-15, amongst the 50 major countries supplying to India. 

However, with sanctions lifting this year in January, the oil imports have gradually jumped. India sourced 12.7 million tonnes of crude oil in the financial year 2015-16 which increased from 11 million tonnes in the preceding two fiscal years, Pradhan said in a written response to the Lok Sabha. 

In April-June 2016, the country imported 5 million tonnes of oil from Iran, which made it the fourth biggest supplier just after Venezuela which supplied 5.2 million tonnes. 

In 2009-10, Iran had exported 21.2 million tonnes of oil to India, that gradually declined to 18.5 million tonnes in 2010-11. In the 2011-12, the country exported 18.1 million tonnes of oil. 

Pradhan further said that during the first quarter of current financial year, India sourced 53.2 million tonnes of crude oil, out of which 65 percent was imported from the volatile region of Middle East. India sources around 80 percent of its oil requirements. 

Iraq was the second largest exporter of oil to India in 2015-16, supplying 36.8 million tonnes, followed by 23.7 million tonnes from Nigeria and 23.6 million tonnes from Venezuela. 

The country spent $64 billion (about Rs.416,361 crore) importing 202.9 million tonnes of oil in the fiscal 2015-16, a decline from $112.7 billion (about Rs.687,416 crore) by importing 189.4 million tonnes a year earlier, Pradhan said. This was possible as there was a sharp decline in the global oil prices that helped India trim its oil import bill. 

During April-June this year, India spent $15.8 billion (Rs.105,624 crore) by importing 53.2 million tonnes of crude oil, he added.