Iraq crisis could impact oil prices in India

Indian government is keeping a close watch on the ongoing crisis in Iraq where terrorist groups led by ISIS (Islamic State in Iraq and Syria) are attacking and capturing regions in the country. Though the crisis hasn’t yet caused any disruption in the country’s crude oil supplies to India, it has the potential to push up global crude prices. In FY14, India imported around 13% of its crude oil from Iraq, the most after Saudi Arabia, which provided for about 20% of the country’s oil imports of 190 million tonnes in the year. India’s dependence on Iraq crude oil surged since FY12 after US sanctions on Iran.