Iraq remains top oil suppplier to India_ US overtook Saudi

The United States overtook Saudi Arabia as  the second biggest oil supplier to India last month_ as refiners boosted cheaper US crude purchases to record levels and to offset supply cuts from the Organization of the Petroleum Exporting Countries and its allies (OPEC+).

India's imports from the world's top producer rose 48% to a record 545_300 barrels per day (bpd) in February from the prior month_ accounting for 14% of India's overall imports last month.

In contrast_ February imports from Saudi Arabia fell by 42% from January  to a decade-low of 445_200 bpd_ the data by reuters showed. Saudi Arabia_ which has consistently been one of India's top two suppliers_ slipped to No. 4 for the first time since at least January 2006.

"U.S. demand was weak and refineries were running at low rates so the U.S. crude had to go somewhere and Asia is the region which has seen rapid demand recovery_" said Ehsan Ul Haq_ analyst with Refinitiv.

"China has not been taking U.S. oil because of trade problem so India is the obvious choice_" Ehsan said.

India_ the world's third biggest oil importer and consumer_ had repeatedly called on major oil producers to ease supply curbs to aid global economic recovery and had pointed to Saudi Arabia's voluntary cuts for contributing to a spike in global oil prices.

Iraq continued to be the top oil seller to India despite a 23% decline in purchases to a five-month low of 867_500 bpd_ the data showed.

Iraq has reduced annual supplies of oil to several Indian refiners by up to 20 per cent for 2021 as OPEC's second-largest producer tries to meet its obligations under the group's production deal.