Russia, US Reduce Crude Exports to India Amid Rising Domestic Demand
In December 2024, India experienced a notable shift in its crude oil import patterns as both Russia and the United States curtailed their exports to the country. This reduction is primarily attributed to increased domestic demand within these exporting nations, leading to a reallocation of their crude supplies.
Decline in Imports from Russia and the US
Russia, which had been a significant supplier of crude oil to India, reduced its exports due to heightened domestic refining needs. Consequently, Russia’s share in India’s crude import market decreased to 33.4% in December. Similarly, the United States, along with other distant suppliers like Venezuela and Brazil, collectively lost a 17% share of the Indian crude import market during the same period.
India’s Shift to Alternative Suppliers
To compensate for the reduced imports from Russia and the US, India turned to alternative suppliers in the Middle East and Africa. Notably, imports from Iraq, the United Arab Emirates (UAE), Kuwait, Angola, and Nigeria increased, filling the gap left by the traditional suppliers. This strategic diversification ensured the stability of India’s energy supply amid global market fluctuations.
Implications for India’s Energy Security
The reduction in crude exports from Russia and the US underscores the volatility of global energy markets and the importance of diversified sourcing for energy-importing nations like India. By broadening its supplier base, India aims to enhance its energy security and mitigate risks associated with over-reliance on specific countries.
India’s proactive approach in adjusting its crude oil import strategy highlights its resilience in navigating the complexities of global energy supply chains. As domestic demands in exporting countries like Russia and the US continue to influence international trade dynamics, India’s diversification efforts play a crucial role in maintaining a steady energy supply to support its economic growth.
