New Delhi: America has now become second biggest oil supplier to India, the worlds third largest oil consumer. US supplied almost 2.2 million tonne (mt) of oil to India in February as per trade Data.
According to the data, this is higher than even Saudi Arabia, which had traditionally been among the biggest exporters of oil to India. Data shows that there is 48 per cent growth in US oil exports to India and is accounting for almost 14 per cent of India's total oil imports in February.
Surprisingly, Saudi supplied only about 1.8 mt of oil to India in February, a fall of over 40 per cent, that pushed it to number four position among countries meeting energy demand of the worlds third largest oil importer.
Analysts says that US has become the biggest gainer of its decision to impose sanctions on oil producing countries Iran and Venezuela as it has steadily improved its exports post sanctions. According to Sources US sanctions have lifted oil trade of US as it is quickly occupying the space vacated by Iran that has been among India's top three oil suppliers in the past.
Before sanctions reduced Iranian oil supplies to almost zero level in FY21, the Islamic nation used to export over 20 mt of oil to India, accounting for over 10 per cent of country's total oil imports.
In 2017-18, the imports from Iran were seen at 22.6 mt, while it dipped from 23.9 mt to 1.7 mt respectively in 2018-19 and 2019-20. During the same period, crude oil imports from the US increased to 1.9 mt in 2017-18, 6.2 mt in 2018-19, and 10.3 mt in 2019-20, based on petroleum ministry data.
This year (FY21) upto February, imports from US has already increased to its highest ever level of about 13 mt and May end the year with 15 mt of oil imports. India imports over 200 mt of oil per year and meet 85 per cent of domestic oil needs through shipping channels.
In 2020-21 April-December, US was the fourth largest supplier ($4.9 billion) after Iraq ($9.4 billion), Saudi Arabia ($8.9 billion) and UAE ($7.4 billion)
India began imports of oil from US in 2017.
(From IANS with edits)