India’s crude oil imports from Iraq reached a 21-month high in January, driven by disruptions in US oil supplies due to increased freight rates amid the Red Sea crisis. Preliminary data from commodity market analytics firm Kpler reveals that Indian refiners did not receive any US crude in January, marking a departure from the average of 205,000 barrels per day (bpd) in 2023. Instead, India turned to West Asia, with oil imports from Iraq reaching 1.19 million bpd, a 25% increase from December and the highest since April 2022.
The disruption in US crude supplies also led to a surge in India’s oil imports from the United Arab Emirates (UAE), rising nearly 81% to around 326,500 bpd in January. Meanwhile, crude imports from Saudi Arabia, India’s third-largest supplier, were slightly lower at 690,172 bpd. In total, Indian refiners imported 4.81 million bpd of crude in January, a 9.3% increase from December.
While Russia remains India’s largest oil supplier, with imports standing at 1.53 million bpd in January, a 5.6% increase from the previous month, the challenges in the Red Sea disrupted US crude supplies and led to a preference for traditional Persian Gulf suppliers.
The Red Sea crisis, marked by attacks on cargo ships by Yemen’s Houthi rebels around the Bab el-Mandeb strait, prompted major shipping lines and Western oil companies to avoid the route. As a result, Indian refiners opted for alternative suppliers, highlighting the impact of geopolitical events on global oil trade dynamics.
