Iraq is India's second largest crude oil supplier behind Saudi Arabia. It met over 13 per cent of India's oil need in 2013-14, supplying about 25.1 million tonnes (MT) of oil. The same level of imports was projected to be maintained in current fiscal.
"There was some spurt in oil prices in the immediate aftermath of breakout of violence in Iraq but supplies have not been disrupted as yet and even prices have declined," an Oil Ministry official said.
"We have excellent understanding with suppliers like Saudi Arabia. We are sounding oil suppliers in Middle East and elsewhere meeting any of the supplies that get disrupted from Iraq," he said. "There is no situation yet for pressing of panic buttons. Everything is under control."
Brent crude fell for a second day today on signs violence in Iraq may not affect the nation's oil supply. Brent for August settlement dropped as much as 78 cents to USD 112.16 a barrel.
Brent had last week gained 4.4 per cent, the biggest raise since July, as the unrest in Iraq fanned concern that supplies from OPEC's second-largest producer may be disrupted.
India, the world's fourth-largest oil consumer, imported about 190 MT of crude oil 2013-14. Of this 25.1 MT came from Iraq. Saudi Arabia was the largest supplier at 38.1 MT.
From Iraq, Indian Oil Corp (IOC) imported 12.7 MT of crude oil in 2013-14, followed by Hindustan Petroleum Corp Ltd (HPCL) with 4.4 MT. Reliance Industries' twin refineries at Jamngar in Gujarat imported 3.8 MT while HPCL's Bhatinda refinery bought 2.5 MT.