India Breaks Oil Import Record, Boosts US Crude Purchases to Ease Tariff Tensions with Trump

International News: India’s crude oil imports from the US climbed sharply in October, reaching 540,000 barrels per day by October 27. This marked the highest level since 2022. According to energy consultancy Kpler, the figure could touch 575,000 barrels per day by the end of the month. Bookings for November stand between 400,000 and 450,000 barrels per day. This is far higher than the 300,000 barrels per day India has averaged so far this year. The shift highlights India’s recalibrated trade strategy.

What triggered this sudden rise?

Analysts say the move is primarily driven by economic logic. The widening price gap between Brent and WTI crude made US oil attractive. Additionally, weaker demand from China pushed American crude into global markets at competitive rates. For Indian refiners, this became a profitable option compared to other suppliers. Still, Russia remains India’s top supplier, contributing around one-third of total crude imports. Iraq follows in second place, while Saudi Arabia holds the third position. The US is now fast gaining ground.

Is it about more than economics?

Industry insiders believe that India’s decision carries a political signal too. Refiners have ramped up purchases of Midland WTI and Mars grade crude in recent months. This diversification reduces overdependence on Russian barrels and demonstrates cooperation with Washington. The timing is crucial as Western sanctions on Russian giants like Rosneft and Lukoil tighten. Indian refiners have historically bought from them, but global restrictions create risks. By buying more US oil, India positions itself as a flexible and pragmatic buyer.

How does Trump factor in?

Rising US crude imports are also tied to improving trade relations with the Trump administration. In August, Washington slapped tariffs of up to 50% on Indian goods. Nearly half of those penalties were linked to India’s continued Russian oil purchases. By boosting American imports, India signals goodwill toward Washington while safeguarding its energy security. The message is clear: India is open to balance its oil basket in ways that can ease commercial disputes.

Is this shift sustainable?

Experts caution that the surge in US imports might be temporary. Kpler’s lead analyst Sumit Ritolia noted that India’s refining flexibility allows it to seize short-term opportunities. However, long-term dependence is unlikely due to high freight costs and the light nature of US crude. Transporting oil from such long distances reduces profit margins. Moreover, Russia still offers cheaper supplies that India cannot easily replace. Thus, while the October surge is notable, it may not become a permanent trend.

What does this mean for Russia?

Despite India’s rising US imports, Russia continues to dominate its oil market. Moscow supplies nearly a third of India’s crude, maintaining strong ties despite sanctions. Yet the diversification move shows India’s awareness of risks tied to heavy Russian reliance. If Western restrictions tighten further, New Delhi will have more options on the table. The decision also strengthens India’s image as a buyer willing to keep all doors open. Balancing between Moscow and Washington remains India’s strategic challenge.

Will this cool tariff tensions?

For now, India’s higher purchases of US crude serve both economic and diplomatic purposes. They help refiners secure affordable oil while signaling to Washington that India values partnership. Whether this eases Trump’s aggressive tariff stance remains to be seen. If American policymakers see India as a key buyer, trade friction could ease in the coming months. But if costs rise, refiners may scale back purchases again. India has played a smart card, but the long game still lies ahead.