US overtakes UAE to become India’s 4th largest crude oil supplier; Russia still tops the chart

The United States of America has become the world’s fourth largest supplier of crude oil to India, overtaking the UAE. According to Vortexa, an energy cargo tracking firm, India's US crude imports doubled to reach 0.33 million barrels per day (mbd) in April, increasing from 0.17 mbd in the previous year and 0.24 mbd in March.India seeks to enhance its energy procurement from the US, responding to President Donald Trump’s desire to address bilateral trade disparities. Following discussions between Trump and Prime Minister Narendra Modi in Washington in February, foreign secretary Vikram Misri indicated potential growth in India's energy purchases from the US, projecting an increase from $15 billion to approximately $25 billion.The US achieved a 7.3% share of India's crude imports in April, exceeding the UAE's 6.4%. However, it remained behind Saudi Arabia (10.4%), Iraq (19.1%), and Russia (37.8%). The April figures showed increased shares for Russian and Iraqi imports, whilst Saudi Arabia and the UAE experienced declines compared to March, according to an ET report.Russia maintains its position as India's leading supplier, largely because of the preferential pricing offered to Indian purchasers. The primary recipients continue to be India's private sector refineries, operated by Reliance Industries and Nayara Energy, which has Rosneft backing.Rohit Rathod, Vortexa analyst, explained: "As for US flows growing, it has more to do with slowing US exports to Europe-especially due to alternative light-sweet supplies closer to Europe and recent refinery closures-pushing these barrels toward other markets, mainly Asia and India." India represented approximately 8% of total US crude exports in April.The decrease in UAE's crude oil exports to India during April was due to heightened shipments in March, according to Rathod.Also Read | ‘Don’t want you building in India’: Donald Trump’s clear message to Apple CEO Tim Cook to 'Make in US'; says India can take care of themselves"Most likely as they try to regain market share elsewhere-in East Asia and Europe," Rathod said regarding the reduced Saudi oil imports in April. "With the rising output from OPEC+, we should see the return of Saudi barrels into Indian imports."The alliance OPEC+, comprising approximately 23 nations under Saudi Arabia and Russia's leadership, plans to boost supply by roughly 400,000 barrels daily starting May, with an identical increase scheduled for June.Saudi Arabia, with its substantial spare production capacity, is expected to contribute the majority of these additional supplies.