Recent data released by the Indian Ministry of Commerce and Industry has shed light on significant shifts in India's oil import landscape, positioning Iraq as the second-largest oil supplier to the country, trailing only behind Russia. In December 2023, the cost of crude oil exported from Russia to India declined to $77.82 per barrel, while oil shipments from Iraq were priced slightly higher at $79.34 per barrel.

India, renowned as the third-largest oil-consuming nation globally, has been strategically diversifying its oil sources amidst fluctuating global dynamics. Following the geopolitical tensions stemming from the invasion of Ukraine in early 2022, Indian oil refineries swiftly turned to procure lower-priced Russian oil. However, the landscape has evolved, with oil imports from Iraq gaining prominence, especially as Russian oil prices surged, aligning closely with Iraqi shipments by mid-2023.

Notably, oil imports from Saudi Arabia, traditionally a significant player in India's oil market, have emerged as the most costly among the top suppliers. In December 2023, the average price of crude oil exported from Saudi Arabia stood at $87.19 per barrel, underscoring the competitive advantage enjoyed by Russian and Iraqi oil in the Indian market.

The evolving dynamics of India's oil imports underscore the intricate interplay of geopolitical events and market forces, shaping the choices of major oil-importing nations. As India continues to navigate these complexities, analysts anticipate continued scrutiny of global oil markets and strategic maneuvers to ensure energy security in the nation's quest for economic growth and sustainability.