To ease trade tensions, India has increased crude oil imports from the US, which reached 540,000 barrels per day in October. However, Russia still remains India’s largest oil supplier. This increase may be temporary.
New Delhi: As part of efforts to reduce tensions with the Trump administration, India has rapidly increased imports of crude oil from America. As of October 27, India’s oil imports from the US reached 540,000 barrels per day, the highest level since October 2022. News agency PTI reported that India imported about 575,000 barrels per day of oil from the US in October and this may increase to about 400,000-450,000 barrels in November. Earlier this year, India was importing an average of just 300,000 barrels of oil from the US.
Why did India increase oil imports from America?
India is looking at oil imports as a way to ease trade tensions with the US, after the Trump administration imposed heavy tariffs on Indian products. Another reason is that India is facing further sanctions against Russian energy companies Rosneft and Lukoil.
But, despite the increase in US oil supplies, the fact is that Russia remains India’s largest crude oil supplier. One-third of imports come from Russia. Iraq is at second place and Saudi Arabia is right behind it. Experts believe that this current surge in imports will not last long. It is estimated that imports may reduce due to longer shipping time and higher costs.