Iraq has maintained its role as India’s second-biggest crude oil supplier, strengthening energy ties between the two nations despite shifting global trade patterns and sanctions-related market turbulence.

According to data from market intelligence firm Kpler, India sourced around 904,000 barrels of crude per day from Iraq in September — a notable rise from 730,000 barrels daily recorded in August. The increase helped Iraq hold its position behind Russia, which remained India’s leading supplier with roughly 1.6 million barrels per day, accounting for 33.3% of India’s total imports.

Saudi Arabia and the United Arab Emirates followed as India’s third and fourth largest sources of crude oil, respectively.

India, the world’s third-largest oil consumer, depends on imports for more than 85% of its energy needs, sourcing crude from about 30 different countries to keep its refineries running.

While September saw stronger flows from Iraq, shipments for the first half of 2025 were slightly lower than last year. Between January and June, Iraq’s oil exports to India averaged 860,000 barrels per day, down 4% from the 900,000 barrels per day seen in the same period of 2024.

The shift comes amid changing dynamics in global oil trade. Earlier this year, Indian refiners scaled back on Russian oil purchases after being alerted to upcoming US sanctions, which have since tightened restrictions on Moscow and disrupted traditional supply routes. This has prompted refiners to diversify sources while maintaining cost efficiency.

Analysts say Iraq’s steady production and proximity make it a key alternative for Indian refiners seeking to balance affordability with supply stability in an increasingly volatile energy market.