Last month, Canada and the US share in crude oil imports rose to a record 11%. According to information received from sources, in January, crude imports from Gulf countries and South America decreased. Crude imports from Canada and the US doubled in January compared to December. Canada brought in 142,000 barrels a day while the US received 367,000 barrels. The US has become India’s fourth largest crude supplier after the United Arab Emirates.

48 million barrels of crude was imported in January

About 48 lakh barrels of crude were imported into Asia’s third largest economy, ie, last month. It was down 6% from December last year but slightly higher than January 2020. According to Ehsan-ul-Haq, lead oil research and forecast analyst at Refinitive, “Petrol demand in India has increased more than other products.” Petrol is high in North American crude but distillate is more in the oil of Gulf countries. In November, US crude was cheaper than another supplier, while Canadian crude is available for much less than Brent.

Diversification to prevent import interruption

India is the third largest country in the world to import and consume crude. More than 80% of the crude here comes from outside, with the bulk being from Gulf countries. The reason India’s dependence on Gulf countries for crude has declined is that refining companies are trying other sources to avoid import interruption. At the same time, they are also trying to increase margins by sourcing cheaper crude.

Reduced oil supply from Iraq and Saudi Arabia

Crude imports from Gulf countries fell to an eight-month low of 61% in January. This is due to a decrease in the supply of Iraq and Saudi Arabia. Crude imports from Latin America also fell to a six-month low of 6.4%. Iraq has cut annual oil supplies this year in deals with Indian refining companies.

29% less oil from Saudi Arabia in January

Saudi Arabia received 29% less oil in January than in December. Less oil came from Iraq last month, despite it being the largest supplier after Saudi Arabia. Oil imports from OPEC countries fell to a record low from last April to this January due to low supply of crude from Gulf countries and South America.

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