Iraq Remains India's Second-Largest Oil Supplier in April 2023

Iraq exported over 1 million barrels of oil per day to India in April 2023, maintaining its position as the second-largest supplier after Russia, according to preliminary data from trade flow tracking agencies Kpler and LSEG. Despite a decline in imports from Iraq and Saudi Arabia compared to the previous month, India's overall oil purchases increased by 13-17% in April.

Russia continued to be India's top oil supplier, with Iraq and Saudi Arabia following closely behind. India's oil imports from Iraq saw a 20-23% decrease in April compared to the previous month. However, the country still imported a substantial amount of oil from Iraq, solidifying Iraq's position as a major supplier to the world's third-biggest oil importer and consumer.

In May, India's imports of Russian oil are expected to decline to 1.1 million barrels per day from 1.75 million barrels per day in April. Despite this anticipated decline, Russia is likely to remain the largest supplier of oil to India, with Iraq maintaining its second-largest supplier status.

Why this matters: India's oil import trends have substantial implications for global energy markets and geopolitical dynamics. As a major oil consumer, India's choices in sourcing its oil supplies can influence market prices and the strategic decisions of oil-producing nations.

The data from Kpler and LSEG highlights the ongoing importance of Iraq and Russia as key oil suppliers to India, even amidst fluctuations in import volumes. As India continues to navigate its energy needs and diversify its oil sources, the relationships with these major suppliers will remain critical in shaping the country's energy landscape.

Key Takeaways

• Iraq exported over 1 million barrels of oil per day to India in April 2023.
• Russia remained India's top oil supplier, followed by Iraq and Saudi Arabia.
• India's oil imports from Iraq saw a 20-23% decrease in April compared to March.
• India's oil import trends have substantial implications for global energy markets.
• Iraq and Russia are critical oil suppliers to India, despite fluctuations in import volumes.