India’s government has asked refiners to consider buying more crude cargoes from the U.S. and Venezuela on the spot market as Indian oil purchases are under scrutiny following the trade deal with the United States.
Indian refiners are steering clear of Russian crude in the wake of the trade deal with the United States, which the White House said includes India’s commitment “to stop directly or indirectly importing Russian Federation oil.”
The 25% tariff on India that President Donald Trump placed in August 2025, due to India’s purchases of Russian crude, is now removed.
India, however, has not officially confirmed it would halt all purchases of Russian crude oil. Indian Foreign Ministry spokesperson Randhir Jaiswal said last week that energy security and diversification of crude supplies would be paramount in sourcing.
Yet, there are indications that India is pressed to boost purchases of U.S. crude and seek Venezuelan oil, for which the U.S. has tapped traders Vitol and Trafigura to sell it.
Indian buyers are being asked to prioritize U.S. and Venezuelan crude in tenders on the spot market, executives at refineries with knowledge of the situation told Bloomberg on Wednesday.
India could reasonably boost its U.S. crude intake to about 400,000 barrels per day, up from an estimated 225,000 bpd it imported last year, analysts say.
However, price, sulfur content, and shipping costs from the more distant U.S. coast will also play a role in Indian refiners’ procuring decisions, considering that they prefer the cheapest non-sanctioned supply possible.
At the same time, India’s largest private refiner, Reliance Industries, has reportedly started buying Venezuelan crude again, securing the first Indian purchase of oil from the world’s top reserves holder since the U.S. took control of Venezuela’s oil sales early last month.
So far this year, Indian refiners have boosted purchases of West Africa and the Middle East crudes to replace lost Russian supply.
By Charles Kennedy for Oilprice.com
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