India has more than doubled its crude oil imports from the United States since the start of this year as it seeks to avoid devastating tariffs under President Donald Trump’s plan to “fix” trade imbalances with foreign partners.
The FT reported today, citing official data, that India had reduced purchases of Russian, Saudi, and Iraqi oil by as much as 70% in the first four months of the year, while imports from the U.S. rose by 120%. Still, Russia remains India’s biggest oil supplier, followed by Iraq and Saudi Arabia, with the United States replacing the UAE to become the country’s fourth-largest oil supplier.
Earlier this year, OPEC said that India’s oil demand was projected to grow by 3.4% in 2025 to 5.74 million barrels per day, and then rise another 4.3% in 2026 to 5.99 million bpd. That’s more than double China’s projected growth rates of 1.5% and 1.25% for those years, respectively, cementing India’s reputation as the biggest growth engine for crude oil in the medium term. As of fiscal 2024/25, India’s oil imports averaged 4.88 million barrels.
The jump in Indian oil consumption is being driven by the country’s strong economic momentum, fueled by consumer spending, manufacturing expansion, and continued government support. Diesel remains the biggest contributor to this demand surge, backed by rapid road expansion and robust growth in the transport and petrochemical sectors. Bitumen demand is also expected to rise sharply, thanks to infrastructure projects across the country.
At the same time, India’s government really does not want the United States to impose a 26% on all exports, and is trying to seal a deal by the end of this week. With energy imports from the U.S. pitched as a good way to appease the U.S. president, India may boost its intake of American crude further in the coming months.
By Irina Slav for Oilprice.com
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