India turns to Middle East, US for oil amid Russia
India is dialing back on Russian oil—which made up 36% of its crude supply before February 2022 and in recent years—after discounts shrank and US sanctions made things trickier.
Now, the country's turning to West Asia and the US to keep its energy game strong and prices in check.
Middle Eastern countries are now India's go-to sources
Saudi Arabia, the UAE, and Iraq are now India's go-to sources for heavier crude that local refineries like.
In FY25, these Middle Eastern countries (Iraq: $27.35B, Saudi Arabia: $20B, UAE: $13.86B) sent a combined total of about $61 billion worth of oil to India.
Meanwhile, Indian companies are steering clear of Iranian and Venezuelan oil because of ongoing US sanctions.
Indian firms plan to boost US purchases next year
Even with tariffs on Russian oil imports doubling to 50% in August 2025 (thanks to President Trump), India's buying more American crude—imports rose over 50% in the first half of the year.
Indian firms plan to boost US purchases even further next year, while OPEC nations like Saudi Arabia and UAE have enough capacity to meet rising demand.