India’s US Crude Oil Imports Soar Amid Strategic Trade Diversification

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India significantly boosted its crude oil imports from the United States in April, with shipments rising nearly 34% month-on-month. According to energy analytics firm Vortexa, India imported 3,26,000 barrels per day (bpd) of US crude oil in April 2025, compared to just 170,706 bpd during the same month last year.

Ivan Mathews, Head of APAC Analysis at Vortexa, noted, “I see push and pull factors for India’s imports of US crude in the months ahead,” highlighting the evolving dynamics of India’s crude procurement strategy.

Strategic Push for Trade Diversification

India’s increased crude oil imports from the US reflect a broader strategy to diversify its energy sources and reduce trade imbalances with Washington. This move also responds to the Trump administration’s global tariff policies, which emphasize expanding American oil and gas exports.

US President Donald Trump has prioritized boosting exports to lucrative markets like India, recognizing its status as one of the world’s largest energy importers. This aligns with the US goal of achieving energy independence and expanding its global influence through energy dominance.

Enhancing Energy Security Through Diversification

Beyond fostering stronger economic ties with the US, India’s ramp-up in crude oil imports helps reduce its historical dependence on West Asian oil producers. These producers are often politically volatile. By diversifying its energy import portfolio, India aims to enhance energy security and gain greater leverage in international markets. Mathews suggests that India’s strategy will likely lead to further increases in US crude oil shipments in the coming months.

Balancing Imports Amid Refinery Maintenance

However, this surge in US crude oil imports is expected to be partially offset by seasonal factors. Indian refineries typically reduce imports during the second and third quarters due to scheduled maintenance. Indian refineries are equipped with residue upgrading units such as Residue Fluid Catalytic Cracking (RFCC), hydrocrackers (HDC), and cokers. These units are optimized for processing heavier Middle Eastern crudes. Mathews explains, “If India imports more light-sweet West Texas Intermediate (WTI) crude from the US, they could balance this by importing heavier crudes elsewhere. This assumes other factors remain constant.”

Outlook: Continued Shift Toward US Crude

India’s strategic shift toward importing more US crude oil signals a transformative approach to energy sourcing. As reported by invezz.com, refinery operations and crude quality preferences will influence the exact import mix. India’s commitment to diversifying suppliers is poised to reshape its energy trade landscape in the near future.