Plan to cut back from Russia but India increases oil purchases from US, to record level after 2022

India’s import of crude oil from America has reached its record level since 2022 in the month of October. This is being seen as an important step towards reducing dependence on Russian oil and reducing trade tensions with the Donald Trump administration.

According to the data of energy advisory company Kpler, till October 27, India imported 5.40 lakh barrels of crude oil per day from America, which is the highest level after 2022. By the end of this month, this figure is expected to reach 5.75 lakh barrels per day, while the booking for November is likely to be at the level of 4 to 4.5 lakh barrels per day. This figure is much higher than the average of three lakh barrels per day so far this year.

Purchase increased due to prices and economic reasons

Kepler’s Chief Research Analyst (Refining, Supply and Modeling) Sumit Ritolia said that this increase in US oil imports is mainly due to economic reasons. Due to the increasing difference in prices of Brent and WTI crude oil, competitive price of American oil, and declining demand from China, Indian refineries found it profitable to buy oil from America.

However, Russia still remains India’s largest oil supplier and accounts for about one-third of total Indian imports. Iraq is in second place in this matter, while Saudi Arabia remains as the third major supplier. News agency PTI, citing government and oil industry sources, said that Indian refineries have increased the purchase of American Midland WTI and Mars grade crude oil in recent months.

The move is aimed at diversifying supply sources and signaling cooperation with the US. This change has happened at a time when Western countries’ sanctions on Russian oil companies Rosneft and Lukoil have become more stringent. Till now many refineries of India have been purchasing oil from these companies only.

trade tension reduction strategy

This increase in American oil imports is also believed to be related to India’s recent strategy to reduce trade tensions with America. In August, the Trump administration had imposed a duty of up to 50 percent on goods imported from India, of which 25 percent was imposed as a penalty for continuing to buy oil from Russia.

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