Indian Oil Corporation (IOC), India’s largest oil company, placed orders for approximately 2 million barrels of US crude in August for October delivery, according to a foreign media report from Singapore, quoted by IANS.
This marks part of a series of US oil deals amounting to around 2 million barrels for October delivery, following threats from US President Donald Trump to impose additional tariffs on Indian exports.
Russian oil flows remain strong
Despite the increase in US purchases, India continued to import about 2 million barrels per day of Russian crude in August, based on orders placed in June and July. The higher Russian inflows came at the expense of imports from Iraq and Saudi Arabia, energy tracker Kpler noted.
Also Read:Steep tariffs on India took them out of buying Russian oil, pushed Putin to negotiating table: US President Donald Trump
India has maintained that its Russian oil purchases remain within the G7 price cap and are not subject to sanctions. Officials argue that such imports align with US policy, which seeks to keep oil prices in check globally while limiting Moscow’s revenue.
Rising US energy imports
Official trade data shows India’s oil and gas imports from the US jumped 51 per cent between January and June this year. Liquefied natural gas (LNG) imports from the US nearly doubled to $2.46 billion in FY 2024-25 from $1.41 billion the previous year.
In February, Prime Minister Narendra Modi pledged to raise India’s US energy imports to $25 billion in 2025 from $15 billion in 2024 to help narrow America’s trade deficit. Following this commitment, state-owned oil and gas firms have entered discussions for more long-term US energy supply agreements.
Also Read:US tariffs will have 50% to 63.9% impact on many Indian merchandise exports: GTRI
Strategic ties beyond trade
New Delhi has underscored that it is diversifying its energy sources to reduce dependence on Russian supplies. The government has also reiterated that India-US relations extend well beyond trade, encompassing significant geopolitical and strategic dimensions.
Officials told the Parliamentary Standing Committee on External Affairs that there is no change in plans for the sixth round of India-US trade talks, which could pave the way for a future trade agreement.
