Iraq oil exports to India dropped by 4% in the first half of the year, signaling a shift in the global oil trade. This decrease highlights changing preferences among Indian refiners and growing competition among major suppliers.
From January through June, Iraq exported an average of 860,000 barrels per day to India. That figure fell from 900,000 barrels per day in the same period last year. Iraq oil exports to India now face stronger competition, especially from Russia.
Russia maintained its lead as India’s top crude supplier, delivering 1.67 million barrels per day. Iraq ranked second, followed closely by Saudi Arabia. India’s demand for Iraqi oil declined further in May. The country imported 931,000 barrels per day, down from 959,000 barrels per day the year before.
Analysts link this shift to India’s recent decision to reduce reliance on Russian crude. Early this year, Indian authorities advised refiners to prepare for U.S. sanctions on Russian oil. This move forced refineries to adjust sourcing strategies in advance of the sanctions’ announcement.
Despite the drop in India-bound shipments, Iraq oil exports remain strong globally. China’s imports of Iraqi crude increased during the same time. Customs data showed China imported 1.11 million barrels per day from Iraq, up from 1.08 million barrels the previous year.
Throughout the first five months of the year, Iraq’s overall oil exports averaged 3.33 million barrels per day. That figure marked a slight decrease from 3.45 million barrels per day during the same stretch last year. Iraq oil exports saw additional declines in May, with seaborne volumes dropping to 3.66 million barrels per day. That number fell from 3.87 million barrels per day in May last year.
The decline in Iraq oil exports to India stems from a combination of market dynamics, policy decisions, and global competition. Iraq continues to balance between meeting long-term demand from major buyers and maintaining stable revenue in a shifting energy market.
While India remains a vital customer, the rise in Chinese demand offers Baghdad an alternative growth path. Iraq aims to strengthen its position among Asia’s top oil suppliers as the region continues to drive global consumption.