Iraq is getting an advantage over Saudi Arabia and becoming the largest oil exporter in the world. It would build up a race between oil producing countries to maintain market value. A data indicated that Iraq has become the largest crude oil supplier to India in the month of May 2017 and delivered up to one million barrels crude oil per day. Data further indicated that India purchased Iraqi crude oil supplies accounted for 23% in the month of May 2017. It shows 19% of increase over the past 4 months and the share of Saudi Arabia decreased by 1% to 17% during the same time. Most oil producing countries are experiencing a significant amount of competition in major oil markets such India and China. However, OPEC and its partners are continuously focusing on their efforts to decrease or cut production in order to stabilize and balance the global oil prices in the international markets.
Point to be noted that Indian economy depends on its financial reserves estimated at 2 trillion U.S dollars and it needs at least 80% of the revenues to move economic wheel of the country. The IEA (International Energy Agency) is expecting that India would be a rapidly growing consumer of crude oil by the year 2040. The head of refineries for Bharat Petroleum Corporation, Ramachandran said that India has the 2nd largest refinery and Saudi Arabia was the leader of crude oil suppliers, but now situation has been changed. Iraq was at 2nd position as the crude oil supplier to India for several years, but now Iraqi government has increased its crude oil supplies to India and crossed Saudi Arabian position. The Chairman of Hindustan Petroleum Corporation, Kumar Sorana said in a statement that Iraqi crude oil is much better for Indian refineries and it is going to increase at more than 18 million tons in 2017.