India Crude Oil Imports from US Surge Amid Trade Tensions and Russian Oil Diversification

India has sharply increased crude oil imports from the US amid mounting trade pressures and growing sanctions on Russian energy giants. The move is seen as a strategic shift to ensure supply security while balancing geopolitical interests.

India’s US Crude Oil Imports Hit Highest Level Since 2022

India’s US crude oil imports reached 5,40,000 barrels per day (bpd) in October 2025, marking the highest levels recorded since 2022. This surge aligns with India’s strategy of reducing overdependence on Russian oil amidst tightening US sanctions targeting Rosneft and Lukoil.

According to trade data, October is expected to close at approximately 5,75,000 bpd, while forecasts for November suggest volumes will hover between 4,00,000 and 4,50,000 bpd. This marks a significant rise from the average year-to-date figure of 3,00,000 bpd.

Strategic Diversification Amid Trade Tensions With the US

This spike in US oil purchases comes as India seeks to ease trade tensions following the Donald Trump administration's imposition of 50% tariffs on Indian exports. By expanding crude sourcing from the US, India aims to demonstrate trade cooperation and reduce exposure to potential geopolitical fallout from Russia-focused sanctions.

India’s refiners are actively procuring US crude variants like Mars and WTI Midland, capitalising on a favourable Brent-WTI arbitrage. Additionally, subdued demand from China has made US grades more accessible and financially viable.

Read More: Russian Oil Supply to India to Drop Sharply Amid US Sanctions!

Russian Oil Still Dominant, But Under Pressure

Despite this shift, Russia continues to supply approximately 33% of India’s total oil imports. However, changing US sanctions, particularly those targeting Rosneft and Lukoil, are compelling Indian refiners to reassess their contracts. With a November 21, 2025, deadline for winding up transactions with sanctioned Russian entities, refiners are setting contingency plans.

Currently, Rosneft and Lukoil supply 60% of India’s Russian crude intake. A potential disruption could cause significant rebalancing in sourcing strategies, benefiting US and Middle Eastern suppliers.

Conclusion

India’s move to ramp up US crude imports demonstrates a clear strategic pivot. It reflects a balancing act between sustaining energy security, navigating geopolitical complexities, and recalibrating foreign trade relations as pressure mounts over Russian oil sanctions.

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