India’s crude oil imports from the United States surged by 67% in March compared to February, as Indian refiners sought alternatives to Russian oil and the U.S. encouraged key trade partners to increase American energy purchases.
According to data from energy cargo tracking firm Vortexa, cited by the Economic Times, India imported around 244,000 barrels per day (bpd) of U.S. crude last month, up from 146,000 bpd in February.
India Seeks to Reduce Trade Surplus with the U.S.
India’s decision to buy more American oil is part of a broader effort to reduce its trade surplus with the United States. The Indian government is also considering removing the import tax on U.S. liquefied natural gas (LNG) to boost LNG imports and further narrow the surplus, sources from Indian industry and government told Reuters.
In February, India stated that increasing oil and LNG imports from the U.S. would help avoid potential trade tariffs from President Trump’s administration. Following a meeting between Trump and Indian Prime Minister Narendra Modi, India’s Foreign Secretary Vikram Misri indicated that India’s energy imports from the U.S. could see a significant rise.
“I think we purchased about $15 billion in U.S. energy output,” Misri told a news conference, as reported by Bloomberg. “There is a good chance that this figure will go up as much as $25 billion.”
Russian Oil Imports Also on the Rise
Despite the increase in U.S. crude imports, India also boosted its Russian crude purchases in March. Imports of Russian oil rose by 11% from February to 1.66 million bpd, according to Economic Times data.
Earlier in the year, India had reduced its Russian crude purchases following new U.S. sanctions on Russia’s oil trade. However, in March, imports rebounded as traders secured more non-sanctioned tankers to transport crude, and Russia’s flagship Urals grade fell below the G7’s $60-per-barrel price cap, allowing Western firms to be involved in shipments.
Indian officials have stated that the country will continue purchasing Russian oil as long as it remains below the price cap and is transported via non-sanctioned tankers without the involvement of sanctioned companies or individuals.
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