Iraq’s Oil Exports to India Decline in Early 2026
Baghdad – Iraq’s oil exports to India dropped in the first half of 2026. This change comes as Indian refineries are looking to diversify their sources of crude oil. The goal is to lessen the geopolitical risks linked to shipping through the Strait of Hormuz.
Officials from Indian refining companies and the Ministry of Petroleum have stated that this approach aims to enhance supply security.
The reduction in Iraqi oil supplies happens amid rising concerns about safety on important maritime routes, prompting consumers in Asia to source oil from multiple countries.
Despite this decline, Iraqi oil is still an important option for India. The high quality of Basra crude and its reliable supply are significant advantages.
According to Indian refiners, they have secured their crude oil needs until September and are already planning their purchases for the last quarter of the year. This is in response to ongoing worries about how shipping route disruptions could impact global supply chains.
In the meantime, Russia has become India’s top supplier of crude oil in the first half of the year, with imports from the UAE and Brazil also increasing.
India has reduced its purchases from Iraq and the United States as it works to diversify its oil sources and minimize risks associated with relying on one supplier.
Indian refiners have raised concerns about the rise in shipping risks, higher insurance costs, and falling discounts on Russian oil, all of which are affecting their profit margins.
Experts believe that ongoing instability in the Middle East may lead to higher oil prices and introduce new challenges for oil-importing countries in Asia.
