India has been buying more oil from the United States in recent months, as both countries look to expand their energy trade. Trump pushed hard for it when Prime Minister Narendra Modi visited Washington DC in February, putting US crude sales right at the top of his wishlist. Since then, India’s imports from the US have climbed—from 145 thousand barrels per day (kbd) in February to 337 kbd in April, according to Kpler data as of May 26.But this rise in US oil hasn’t come at the cost of Russian barrels. India continues to buy heavily from Russia, with imports rising slightly to 1.9 million barrels per day (mbd) during January-May 2025, above the 2024 average of 1.77 mbd.India’s Crude imports in 2025
Data from RBI FY25 annual reportFor the past three years, Russian oil has played a key role in meeting India’s energy needs with deep discounts, especially as OPEC (Organisation of the Petroleum Exporting Countries) cut supply to keep prices high.However, industry sources say Russia’s share in India’s overall crude basket has dropped compared to last year as that discount has now narrowed. Global oil prices have softened, making Russian crude less competitive than before. One advantage that remains, though, is the delivery model—Russian oil is brought directly to Indian ports, saving on freight costs.US oil comes with its own limitations. Shipments take around 40 days to reach India, compared to 25 days from Russia and just 4-5 days from the Middle East.As a result, while Russia and the US continue to remain major suppliers, Indian refiners are slowly shifting towards quicker and more cost-effective sources like the Middle East and West Africa. Imports from the Middle East rose to 2.28 mbd in the first five months of 2025, up from 2.12 mbd last year.This diversification in sourcing has also helped India manage crude inflation better. According to the Reserve Bank of India’s (RBI’s) annual report for the financial year ending March 2025, the Indian crude basket—an average of imported crude prices—fell from about $84 per barrel in March 2024 to $72 in March 2025. With India importing over 80% of its crude needs, these shifts in sourcing and softer prices have helped cushion the impact of what’s been a highly volatile year for global oil.Also Read: One big thing the market may be wrong about, according to Raghuram RajanAlso Read: US tariffs not a major worry for India’s oil sector: ICICI Securities analyst
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