India’s refiners are turning to US crude imports at a faster pace as geopolitical pressure intensifies over their reliance on Russian oil.
The shift comes after a recent drop in US crude prices, making the grade more attractive compared to Middle East benchmarks.
At the same time, Washington has renewed its warnings against New Delhi’s energy ties with Moscow, further pushing the country’s refiners to diversify their sourcing strategies.
US crude discounts drive buying activity
This week, major Indian refiners including Reliance Industries Ltd., Indian Oil Corp., and Bharat Petroleum Corp. bought larger volumes of US West Texas Intermediate (WTI) crude than usual, according to trading sources.
The purchases were motivated by weaker pricing of WTI relative to Middle Eastern oil grades, which made imports from the US a more cost-effective option.
Traders noted that the current discounts are offering refiners an opportunity to balance procurement costs while maintaining supply security. The companies involved did not provide direct comment on the transactions.
Washington’s pressure over Russian imports
The move comes against the backdrop of mounting pressure from Washington. White House trade adviser Peter Navarro recently renewed calls for India to halt Russian oil imports, accusing New Delhi of indirectly funding Moscow’s military actions in Ukraine.
His comments followed the Trump administration’s decision to double tariffs on Indian goods to 50%, a policy shift that has further strained trade ties between the two countries.
The US has been using both diplomatic and trade measures to encourage India to scale back purchases of Russian crude, highlighting the geopolitical dimension of its energy strategy.
New Delhi’s stance on oil trade
India has consistently defended its right to secure affordable energy, emphasising that Russian oil has been a critical factor in keeping fuel prices stable domestically.
While purchases of Russian barrels have eased under US pressure, India has not stopped them entirely, insisting that Washington’s measures are “unfair, unjustified and unreasonable.”
At the same time, refiners’ increased intake of US crude shows that procurement patterns are shifting, particularly when pricing advantages make alternatives commercially viable.
This reflects India’s balancing act between maintaining energy security and managing diplomatic frictions with global powers.
Refiners adapt procurement strategies
For Indian refiners, the change is not only about geopolitics but also about economics. The fall in WTI prices relative to Middle Eastern benchmarks has allowed them to secure supplies at more favourable terms.
This flexibility enables India’s processors to adjust sourcing depending on both global price movements and diplomatic constraints.
The current purchases highlight the increasing importance of US crude in India’s import mix, a development shaped by both international market conditions and political considerations.
The trend could continue as long as price gaps remain wide and Washington keeps up its scrutiny of Russian oil flows into Asia.
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