New Delhi: India's crude oil imports from the United States climbed to their highest level since 2022 in October, a move seen as part of New Delhi's effort to diversify supplies away from Russia and ease trade tensions with the Trump administration.
India's crude imports from the US reached 540,000 barrels per day as of October 27 - the highest since 2022, according to data from Kpler.
October is likely to close with near 575,000 bpd, and November looks to book around 400,000-450,000 bpd, per US export data - a sharp jump from the year-to-date average of around 300,000 bpd.
The increase was economics-driven, supported by a strong arbitrage window, a wider Brent-WTI spread, and no Chinese demand, which made WTI Midland competitive on a delivered basis for Indian refiners, according to Sumit Ritolia, Lead Research Analyst - Refining, Supply & Modeling at Kpler.
Russia, however, remained the largest crude oil supplier to India, accounting for a third of all imports. Iraq is the second biggest supplier, followed by Saudi Arabia.
Government and trade sources said refiners have increased bookings of US grades such as Midland WTI and Mars to diversify their supply mix and signal cooperation with Washington. The shift comes as Indian refiners face tightening sanctions on Russian oil majors Rosneft and Lukoil.
The increase in crude oil imports from the United States is also seen as part of New Delhi's effort to ease trade tensions after the Trump administration slapped a steep 50 per cent tariff on goods coming from India.
The uptick in US oil imports underscores New Delhi's balancing act - maintaining energy security while managing strategic reserves and addressing Washington's concerns around Russian oil purchases.
Ritolia, however, said further upside is capped. "While the surge underscores India's refining flexibility and ability to capture short-term opportunities, the current rise is arbitrage-led, not structural, as longer voyage times, higher freight, and WTI's lighter, naphtha-rich yield limits increased buying."
The rising US share in India's crude basket, he said, carries strategic value. "The uptick highlights growing US-India energy ties and supports India's broader diversification strategy, balancing supply security, economics, and geopolitical alignment."
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