India’s crude oil imports from the US hit a record 575,000 bpd in October, the highest since 2022, amid sanctions and price advantages.
In a major energy trade shift, India’s crude oil imports from the United States have surged to their highest level since October 2022, driven by economic incentives and tightening Western sanctions on Russian oil companies.
According to energy analytics firm Kpler, India imported 540,000 barrels per day (bpd) of American crude as of October 27, with the month expected to close at nearly 575,000 bpd. This marks a sharp rise from the earlier 2025 average of about 300,000 bpd. Industry projections indicate that November imports could reach 400,000–450,000 bpd, according to PTI reports.
Why India Is Buying More US Oil
Analysts attribute the spike to favourable price dynamics. The widening gap between Brent and WTI crude prices, combined with weak Chinese demand, has made US-origin WTI Midland oil an attractive choice for Indian refiners seeking cheaper alternatives. These conditions opened a lucrative trade window, helping India secure oil at competitive rates.
The shift also comes as India navigates tighter sanctions on Russian energy majors like Rosneft and Lukoil. Increasing US crude imports is being viewed as a strategic balancing act, helping India diversify its energy sources and strengthen trade ties with Washington amid a complex global geopolitical climate.
Despite the surge, Russia remains India’s top crude supplier, covering about one-third of total imports, followed by Iraq and Saudi Arabia. Indian refiners have reportedly increased their intake of US oil grades such as Midland WTI and Mars, both of which suit India’s refining capabilities and diversification goals.
Will the Surge Last?
Experts caution that this record surge may be temporary, as longer shipping times, higher freight costs, and the lighter composition of WTI crude may limit sustained growth. However, the development underscores India’s adaptive energy strategy, leveraging short-term global market shifts while maintaining diplomatic balance between Washington and Moscow.
With energy security and cost efficiency at the core of its import policy, India’s growing reliance on US crude marks not just a market move but a reflection of its evolving geopolitical and economic pragmatism.
Source: FE news
