India's Strategic Shift: Surging US Crude Oil Imports Bolster Energy Ties

In a strategic move to diversify energy sources, India's crude oil imports from the United States reached their highest levels since 2022 this October. This shift comes as New Delhi looks to reduce dependency on Russian supplies and ease past trade tensions with the U.S., exacerbated during the Trump administration.

Data from Kpler reveals that India's crude imports from the U.S. averaged 540,000 barrels per day by October 27, marking a notable increase as compared to previous levels. The rise is attributed to economic factors including a strong arbitrage window and a favorable Brent-WTI spread, further aided by no competing demand from China.

Despite this increase, Russia remains India's largest oil supplier, followed by Iraq and Saudi Arabia. However, the enhanced U.S. imports signal India's broader strategy to manage energy security while addressing Washington's concerns over Russian oil purchases. Analysts caution that this surge is driven more by short-term opportunities rather than structural change.