New Delhi recorded a significant uptick in crude oil imports from the United States, with volumes reaching 540,000 barrels per day as of 27 October, marking the highest level since 2022. Analysts project that October could close at about 575,000 bpd and anticipate November imports to hover around 400,000-450,000 bpd—well above the year-to-date average of approximately 300,000 bpd.
The jump in US supplies has been driven by strong economics rather than a fundamental structural shift in sourcing strategy. A much wider spread between the Brent benchmark and the US West Texas Intermediate Midland grade, combined with weaker Chinese demand, made American barrels competitive on a delivered basis. According to one analyst, longer voyage times from the US, higher freight costs and the lighter, naphtha-rich yield of US grades limit further substantial growth.
Despite the uptick in American imports, Russia remains the largest source of crude oil, supplying roughly one-third of the country’s total. The country imported about 1.6 million bpd from Russia in September, though this was down slightly from prior months. Russian majors such as Rosneft and Lukoil together account for approximately 60 per cent of Russian oil delivered to India.
The shift toward US barrels emerges amid mounting pressure stemming from fresh sanctions targeting Russian energy firms. Two of those sanctioned firms, Rosneft and Lukoil, count among India’s largest suppliers. Refiners are reviewing contracts and holdings linked to those entities and have, in some cases, paused orders to ensure compliance with banking and shipping restrictions. One industry source noted that “if banks will not clear payments then my intake will be zero”.
On the one hand, the growing share of US crude signals a diversification opportunity for national refiners keen to sharpen sourcing flexibility and economic competitiveness. Some analysts view this as a clear message of enhanced cooperation with the United States and a way to narrow bilateral trade imbalances planning to hit US$500 billion by 2030. On the other hand, the economics of US crude remain constrained: freight from the US Gulf takes 45-55 days; WTI Midland’s yield is less suited to certain refinery configurations compared with heavier Russian or Middle-East grades; and this suggests the current level may not be sustained over the medium term.
Energy industry sources indicate that US grades such as Midland WTI and Mars are being actively booked as refiners seek to capture the arbitrage opportunity. One major public-sector company affirmed its commitment to international sanctions without declaring immediate cessation of Russian crude imports. Private-sector giant Reliance Industries reportedly plans to align with national guidelines while managing existing Russian supply contracts.
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