India's Crude Oil Strategy: Balancing Geopolitical Risks and Supply Diversity

India is recalibrating its crude oil import strategy, moving away from opportunistic discount buying to a focused management of geopolitical risks, according to analytics firm GlobalData.

As oil accounts for approximately 25% of India’s primary energy consumption, the country is prioritizing compliance resilience and supply diversification. Despite domestic exploration, import dependence is projected to rise to 92% by 2035, with demand expected to grow.

Russia's share in India's imports increased significantly post-Ukraine conflict, but recent sanctions have reduced this share. The US and Venezuela have re-entered the supply mix, enhancing US-India energy cooperation, crucial for easing New Delhi-Washington trade friction. The approach aims at maintaining price competitiveness and supply security, according to GlobalData.