NEW DELHI— India has stepped up its purchases of U.S. oil, with Indian Oil Corporation (IOC), the country’s largest oil company, ordering roughly 2 million barrels in August for October delivery, according to a Reuters report from Singapore.
The latest deal adds to a string of U.S. crude purchases for October delivery, coming after former U.S. President Donald Trump threatened to impose additional tariffs on Indian exports.
At the same time, India imported about 2 million barrels per day of Russian crude in August, fulfilling orders placed in June and July to replace shipments from Iraq amid regional geopolitical tensions. Data from analytics firm Kpler indicates the increase in Russian oil flows came at the expense of imports from Iraq and Saudi Arabia.
Official figures show India’s oil and gas imports from the U.S. rose 51% between January and June this year. U.S. liquefied natural gas (LNG) exports to India nearly doubled to $2.46 billion in FY 2024–25, up from $1.41 billion in the prior fiscal year.
Prime Minister Narendra Modi announced in February that India would boost energy imports from the U.S. to $25 billion in 2025, up from $15 billion in 2024, to help narrow America’s trade deficit. Since then, state-run Indian oil and gas companies have opened discussions for additional long-term supply contracts with U.S. firms. New Delhi has also emphasized its intent to diversify energy sources and reduce reliance on Russian oil.
Indian officials note that Russian crude purchases remain compliant with international rules, as they are priced below the G7’s cap. The U.S. has informally supported such transactions, reasoning that increased supply in the market helps curb global oil prices while limiting Russia’s revenue.
The government has also underscored that India–U.S. ties extend far beyond trade, describing the relationship as “multi-layered” and grounded in both strategic and geopolitical considerations. Plans remain unchanged for the sixth round of India–U.S. trade talks, which could pave the way for a bilateral trade agreement. (Source: IANS)
