India Crude Oil Imports: Shocking 25% Drop in Russian Supply, U.S. Doubles in February
In February 2025, latest India news reports significant changes in India crude oil imports due to geopolitical developments and evolving trade policies. The country’s crude oil supply dynamics have shifted as imports from Russia declined sharply, while shipments from the United States nearly doubled.
India, the world’s third-largest oil importer, has been diversifying its crude oil sources to maintain energy security and avoid supply disruptions caused by global sanctions and trade restrictions.
Decline in Russian Crude Oil Imports
India crude oil imports from Russia saw a 25% decline in the first 20 days of February 2025. Western sanctions and payment restrictions on Russian crude oil have made it difficult for Indian refiners to continue large-scale purchases. In February, Russia supplied India with an average of 1.07 million barrels per day (mbd), down from 1.4 mbd in January.
Despite the decline, Russia remains India’s largest crude oil supplier, but the reduced supply has forced India to explore alternative sources.
(Read More on Times of India)
Surge in U.S. Crude Oil Imports
While Russian supplies fell, India crude oil imports from the United States nearly doubled. In February, India imported 200,000 barrels per day from the U.S., compared to 110,000 barrels per day in January.
The surge in U.S. crude oil imports highlights India’s effort to diversify energy sources. As Russian oil shipments become uncertain, Indian refiners are securing deals with American suppliers to maintain a stable crude oil supply.
(Read Related: How India is Managing its Energy Security)
Increase in Oil Imports from Other Suppliers
In response to declining Russian supplies, India has increased crude oil imports from alternative suppliers:
- Iraq: Shipments to India increased to 1.08 mbd in February, up from 0.8 mbd in January.
- Saudi Arabia: Crude oil exports to India rose to 0.91 mbd, compared to 0.77 mbd in January.
- Iran: India has resumed limited oil purchases from Iran following diplomatic negotiations.
These shifts indicate India’s commitment to diversifying its crude oil imports while ensuring uninterrupted supply.
(Latest Market Report on Energy Trends)
India’s Energy Strategy & Trade Policies
The changing pattern in India crude oil imports is part of a larger energy security strategy. Recently, India and the U.S. have strengthened their energy trade partnership. Indian leaders have committed to increasing crude oil and LNG imports from the U.S. to enhance economic and trade relations.
During discussions between Indian Prime Minister Narendra Modi and U.S. officials, India also proposed reducing tariffs on certain American goods to balance trade relations. This move is expected to facilitate smoother energy trade.
(Read More on India’s Trade Policies)
Impact on India’s Economy & Energy Security
The ongoing shift in India crude oil imports has a significant impact on the country’s energy security and economic stability.
Key Benefits of Diversifying Oil Imports:
- Reduced Dependency on a Single Supplier:
- By sourcing oil from multiple countries, India reduces risks associated with over-reliance on a single nation.
- Stable Domestic Fuel Prices:
- A diversified crude oil supply helps keep fuel prices in check, benefiting both industries and consumers.
- Stronger Trade Ties:
- Expanding crude oil imports from the U.S. and Gulf nations strengthens India’s global trade relationships.
- Long-Term Energy Security:
- India is investing in refining capacity and alternative energy sources to reduce crude oil dependency.
As India crude oil imports continue to evolve, the country remains focused on securing a cost-effective and stable energy supply. By increasing imports from the U.S., Iraq, and Saudi Arabia, India is taking proactive steps to safeguard its energy future.
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