Geographic Distribution of Crude Sources Shifts Toward Western Hemisphere and Middle East

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The geographic distribution of India’s crude oil sources shifted notably in 2025, with increased flows from the Western Hemisphere and traditional Middle Eastern suppliers while Eurasian sources declined. Data shows that US crude imports to India surged by 65.6% to $8.2 billion during April-December 2025, while Russian crude imports contracted by more than 17%, falling from $40 billion to $33.1 billion year-on-year.

December 2025 illustrated this geographic reorientation. Western Hemisphere supplies, primarily from the United States, increased by 31% to $569.30 million. Middle Eastern supplies demonstrated robust growth, with Saudi Arabian shipments surging 61% to $1.75 billion, Iraqi deliveries rising 4.56% to $2.37 billion, and UAE supplies growing 6% to $1.65 billion. Conversely, Eurasian supplies, dominated by Russian crude, declined 15.15% to $2.71 billion.

The shift in geographic distribution reflects both logistical and geopolitical considerations. Middle Eastern suppliers benefit from proximity and established trade relationships with India. Western Hemisphere suppliers, particularly the United States, offer both quality crude and alignment with broader trade relationships. Eurasian supplies, while geographically accessible, faced headwinds from trade policy pressures.

The US imposition of a 25% punitive tariff on Indian goods on August 27, 2025, designed to discourage purchases of sanctioned Russian petroleum, influenced the geographic rebalancing. This policy effectively made Eurasian sources less economically attractive while Western Hemisphere and Middle Eastern alternatives became more competitive. Russian crude imports declined from $3.62 billion in July 2025 to $2.71 billion in December 2025.

India’s total crude oil imports from approximately 39 countries across all geographic regions reached $11.29 billion in December 2025, up 9.1% from $10.34 billion in December 2024. Cumulative imports for April-December 2025 totaled $105.10 billion, compared to $109.33 billion in the corresponding period of 2024. The geographic shift demonstrates India’s global approach to energy security.

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