India has significantly expanded its imports of crude oil from the United States in what may be considered an attempt to defuse tensions with the Trump administration. As of October 27, the nation’s daily imports of crude oil from the United States were 540,000 barrels, the largest increase since October 2022, according to Kpler.
According to PTI, October is predicted to end with almost 575,000 barrels per day (bpd) of oil imports from the US, while November may see between 400,000 and 450,000 bpd. Compared to the average of roughly 300,000 bpd observed earlier this year, this is a significant increase.
According to analysts, economic considerations are the primary cause of the spike. Indian refiners found US-grade WTI Midland oil more appealing due to a greater price differential between Brent and WTI oil as well as poor demand from China. A robust trade window was created by these circumstances, enabling India to purchase oil at affordable prices.
Russia is India’s largest supplier of oil, accounting for over one-third of total imports, despite the increase in American supply. Saudi Arabia is still in second place, after Iraq. In an effort to diversify their sources and improve energy cooperation with Washington, officials said Indian refiners are also purchasing more US oil grades, including Midland WTI and Mars, according to PTI.
The move to American oil coincides with India’s increased sanctions against Russian energy behemoths like Lukoil and Rosneft. Another strategy to reduce trade tensions with Washington is to increase purchases from the US, particularly in light of the Trump administration’s high tariffs on Indian exports.
Although the recent increase demonstrates India’s flexibility and capacity to seize opportunities, experts warn that it might not last long. The lighter form of WTI oil, longer delivery durations, and increased freight costs may prevent further expansion.
Nonetheless, the increasing proportion of US oil in India’s import balance is strategically significant. It displays New Delhi’s attempt to strike a balance between cost-effectiveness, energy security, and its diplomatic relations with both Moscow and Washington.
