Amidst the increasing conflict between Iran, Israel and America, the eyes of the whole world are on the supply of crude oil. Since India imports 85% of its oil needs from abroad, every development that happens in the Gulf countries directly impacts our pockets. But do you know which countries in the world have the power to dictate the terms of the global oil market? And in this period of conflict, which is the country where crude oil is still being sold at very low prices? Let us understand this global oil game from the perspective of statistics.
The world’s largest oil producer and exporter
On the global stage, America still remains at the first position in the production of crude oil. According to the data of 2026, America is the largest oil producing country in the world due to its advanced ‘shale technology’. After that comes Saudi Arabia and Russia. These three countries together control a large part of the world’s total oil production. In terms of exports, Saudi Arabia remains the uncrowned king; This is because domestic consumption there is relatively low, which allows it to send crude oil to every corner of the world. Apart from this, Iraq, Canada, UAE and Kuwait also feature prominently in the list of major oil-exporting countries.
Where is the cheapest petrol and crude oil available?
The cheapest petrol in the world is found in countries which have huge reserves of oil and where governments provide heavy subsidies. According to the latest data of March 2026, Libya is the cheapest petrol and crude oil selling country in the world, where it costs only $0.024 (about ₹2.15 in Indian currency) per litre. After that comes Iran and Venezuela, where the price of petrol ranges between ₹ 2.50 to ₹ 3 per liter. Even in countries like Kuwait and Angola, petrol is available at a price of less than ₹30 per litre.
Despite the ongoing war and international sanctions, Russia still remains the largest supplier of crude oil to India. India is meeting about 20 to 25 percent of its total oil requirements from Russia alone. Amid recent geopolitical tensions, Iraq and Saudi Arabia have also stepped up their efforts to increase oil supplies to India. India’s strategic thinking has been that it should not be completely dependent on any one country; Instead, it buys oil from different regions—such as Russia, the Middle East, and the United States—so that in times of crisis, such as during war, the oil supply is not completely disrupted.
lifeline in times of crisis
When sea routes are closed or supplies are disrupted due to war, ‘Strategic Petroleum Reserves’ (SPR) act as a vital lifeline. These consist of huge caves or tanks built under the ground, in which oil can be stored to last for several months. The United States, China, and Japan have the world’s largest oil reserves—enough to meet their countries’ needs for 100 to 200 days without any outside imports. India currently has strategic reserves equivalent to about 10 to 12 days’ supply; Therefore, to increase this capacity, work is being done rapidly to build new storage tanks under the ground.
Economics of Crude Oil Production Costs
The cost of extracting crude oil varies greatly from country to country. Oil extraction is most economical in Gulf countries like Saudi Arabia and Kuwait, mainly because their oil reserves are very close to the ground surface and their wells produce a lot of oil. In these areas, the cost of extracting a barrel of oil comes to less than $10. In contrast, in countries such as the United States and Canada, costs can rise to $30 to $40 per barrel, due to the need to drill deeper wells and use modern techniques to extract oil from shale. It is from this difference that it can be understood why whenever oil prices fall worldwide, it is the Gulf countries who benefit the most.