The BRICS TimesRussia remains India’s largest oil supplier, accounting for about one-third of total Indian imports. Iraq holds the second spot.
India’s crude oil imports from the United States hit a post-2022 record high in October. This move signals a significant step towards cutting reliance on Russian oil. It also helps in easing trade tensions with the Donald Trump administration.
US Oil Imports Soar
Data from energy advisor Keppler reveals strong figures. As of October 27, India imported 540,000 barrels of crude oil per day from the US. This is the highest level recorded since 2022. The month’s end figure could reach 575,000 barrels per day. November bookings are likely to be between 400,000 and 450,000 barrels per day. This number is much higher than this year’s average of 300,000 barrels per day.
Cost and Market Factors Drive Buying
Sumit Ritolia is Kepler’s Chief Research Analyst. He covers refining, supply, and modeling. Ritolia stated the US oil import increase is mainly due to economics. The widening price gap between Brent and WTI crude oil is a factor. Competitive pricing of American oil also played a role. Indian refiners found US oil acquisition profitable due to China’s reduced demand.
Russia Still Leads Supply
Russia, however, continues to be India’s biggest oil supplier. It accounts for almost one-third of all Indian oil imports. Iraq is the second-largest supplier. Saudi Arabia maintains its position as the third major supplier. Refining and industry sources spoke to the news agency PTI. They noted Indian refiners have recently bought more US Midland WTI and Mars grade crude oil.
Diversification and Strategy
The aim of this move is to diversify supply sources. It also indicates cooperation with the United States. This change happens as Western sanctions on Russian firms tighten. Rosneft and Lukoil are Russian oil companies facing these stricter sanctions. Many Indian refiners previously bought oil from these specific companies.
Easing Trade Tensions
This increase in US oil imports aligns with India’s strategy. India aims to reduce recent trade tensions with the US. In August, the Trump administration imposed duties up to 50% on Indian imports. 25% of this tariff was a penalty. It was imposed for continuing to buy oil from Russia.
