India Oil Imports from Russia: Reliance US Refinery Deal and Energy Security

Context
Due to global energy disruptions linked to the West Asia conflict, India is balancing its energy security through overseas investments and diversified crude oil sourcing.

Reliance US Refinery Project

• Reliance Industries plans to fund a new shale-oil refinery in Texas through America First Refining.
• It represents one of the largest overseas energy investments by an Indian company.
• The project is expected to strengthen India–US energy cooperation.
• It may also offset part of the US-India trade deficit through long-term energy trade.


India’s Oil Import Trends

• India’s crude oil purchases from Russia increased about 45% in March.
• Imports rose from around 1 million barrels per day (mbd) to about 1.5 mbd.

Other Major Oil Suppliers

Iraq — around 0.6 mbd
Saudi Arabia — around 0.4 mbd
United Arab Emirates — around 0.1 mbd

Global Significance• The United States believes India’s continued oil purchases help stabilise global oil markets during supply disruptions.

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