Iraq Takes Top Spot in Indian Oil Market from Saudi Arabia

India's oil market has seen a significant shift in recent months, with Iraq overtaking Saudi Arabia as the top crude supplier to the country. According to shipping data compiled by Bloomberg, Iraqi supplies accounted for 23 percent of India's purchases last month, up from an average of 19 percent in the previous four months. This marks a notable increase in Iraq's share of the Indian market.

The change is attributed to refinery upgrades implemented by Indian refiners over the past couple of years, which have enabled them to process crude with a higher sulfur content. Additionally, Iraq has improved its port infrastructure, ensuring a stable supply and reducing delays and inconsistencies in shipments. This has made Iraqi crude more attractive to Indian refineries.

Indian Oil Corp., the nation's biggest processor, is set to boost Iraqi imports to 18 million tons in 2017 under term contracts from 15.6 million last year. Saudi purchases will remain steady at 5.6 million tons. This shift is expected to continue as Indian refiners continue with refinery upgrades and prefer the higher-quality crude from Iraq.