Synopsis: India’s crude oil imports from the U.S. hit a 4-year high in October 2024, signaling a major shift in sourcing strategy amid tightening U.S. sanctions on Russian firms. While Russia still dominates India’s oil basket, the surge in American crude highlights India’s growing diversification and economic pragmatism.
India’s oil import landscape is witnessing a dynamic shift. According to data from energy analytics firm Kpler, India’s crude oil imports from the United States soared to their highest level in over four years this October, as domestic refiners took advantage of favorable price spreads and subdued Chinese demand.
The U.S. accounted for nearly 12% of India’s total crude imports in October 2024, marking a remarkable rebound and the highest share since March 2021. India imported 568,000 barrels per day (bpd) of American crude, contributing to a total crude intake of 4.81 million bpd—a 3% rise compared to September.
Despite this surge, Russia retained its top spot in India’s oil basket, supplying 1.62 million bpd and maintaining a 34% share. Following Russia were Iraq (826,000 bpd) and Saudi Arabia (669,000 bpd), continuing to play vital roles in India’s energy mix. Interestingly, imports from Brazil more than doubled, while those from Nigeria and the UAE declined.
Energy analyst Sumit Ritolia of Kpler emphasized that India’s October crude composition reflects “growing diversification and opportunistic buying patterns.” He pointed out that the increased U.S. volumes were primarily driven by economic factors—such as the wide Brent–WTI price spread and weaker Chinese demand—rather than a direct reaction to Washington’s new sanctions on Russian energy giants Rosneft and Lukoil, which take effect from November 21.
Given the 45–55 day shipping window, most of October’s Russian barrels were contracted well before the sanctions were announced. However, experts warn that December loadings could see a decline as Indian refiners reassess their risk exposure to potential secondary sanctions.
Still, a full stop to Russian oil imports seems unlikely. “Unless Indian refiners face direct sanctions or the government imposes restrictions, Russian barrels will keep flowing—possibly through more complex trading networks,” Ritolia added.
Going forward, India is expected to lean more on crude supplies from West Asia, Latin America, and the U.S., though higher freight costs and varying crude quality could limit substitution. The overarching trend shows India fine-tuning its crude basket for a balance of cost efficiency, supply security, and geopolitical flexibility—a strategy that underscores its energy resilience amid global volatility.
Disclaimer: This article is based on publicly available data and expert insights. Market trends and geopolitical developments may evolve, potentially impacting future oil trade dynamics.
