India’s US Crude Imports Hit Two-Year High As Refiners Diversify Away From Russia

India’s crude oil imports from the United States have surged to their highest level since 2022, reflecting New Delhi’s growing push to diversify energy sources amid tightening sanctions on Russian oil and efforts to ease trade friction with Washington, reported PTI.

According to energy intelligence firm Kpler, India imported around 540,000 barrels per day (bpd) of US crude as of 27 October, marking the highest level in nearly two years.

The month is expected to close near 575,000 bpd, while November bookings are estimated between 400,000 and 450,000 bpd, a sharp rise from the year-to-date average of 300,000 bpd.

The increase, experts say, is driven by favourable economics and strategic considerations. "The surge underscores India’s refining flexibility and ability to capture short-term opportunities," Sumit Ritolia, Lead Research Analyst at Kpler was quoted as saying.

He added that the boost was “arbitrage-led, not structural,” noting that higher freight costs, longer voyage times, and the lighter yield of WTI crude limited sustained growth.

The sharp uptick follows a strong Brent-WTI price spread, limited Chinese demand, and competitive pricing of WTI Midland on a delivered basis.

Indian refiners, including state-owned firms, have reportedly stepped up purchases of US grades such as Midland WTI and Mars to rebalance their supply mix and reinforce cooperation with the United States.

Despite the rise, Russia remains India’s top oil supplier, accounting for roughly one-third of imports, followed by Iraq and Saudi Arabia.

However, recent US sanctions on Russian oil majors like Rosneft and Lukoil have prompted Indian refiners to hedge risks by boosting non-Russian inflows.

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