The steep rise in the energy demand predicted over the next decade will make India import more petroleum oil and coal as renewable energy on its own will not be able to cater to the increasing demand in total.

The India Import Data shows petroleum oil and coal together account for 70% of India’s energy basket, wherein petroleum share is 25% and coal share, is 45%. In order to meet its increasing demand for oil and petroleum products, India is working on options of importing petroleum and oil supplies.

As per the USA Import Data, the United States overtook Saudi Arabia as India’s second-biggest oil supplier after Iraq in the year 2021. India’s imports from the US rose 48% to a record 545,300 bpd in the early months of the current year accounting for 14% of India’s overall imports last month.

US overtook Saudi Arabia as India’s second-biggest oil supplier after Iraq this year as refiners boosted economical US crude purchases to offset OPEC and supply cuts. The switch in supplies is triggered by lower US crude demand, corresponded with Saudi Arabi’s discretionary extra 1 million BPD output cut. This output cut is in accordance with the agreement by the Organization of the Petroleum Exporting Countries and its allies to maintain lower production.

As the demand for oil and petroleum products in the United States of America was weak, the US refineries were running at low rates so the US crude has to go somewhere and Asia is the region that has seen speedy demand recovery.

As per the India Import Data, the country shipped in 39.2 million BPD in the early months of 2021, a decline of 18% from the last year. India has taken smaller volumes in the earlier month of 2021, similarly to others in the market for it is assumed that OPEC nations and its allies might ease the production cuts, resulting in lower prices.

India has repeatedly called on OPEC countries and its allies to ease the supply curbs. The country is the world’s third-biggest oil importer and consumer, importing about 84% of its crude needs and relies heavily on the Middle East.

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