Has Indian Oil Corporation Intensified Its US Oil Purchases?
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Synopsis
India's significant increase in oil imports from the U.S. highlights a strategic shift amid geopolitical tensions. With the Indian Oil Corporation securing substantial orders and diversifying energy sources, the U.S.-India relationship is evolving beyond trade, signaling a robust alliance focused on energy security and economic collaboration.
Key Takeaways
- India's oil imports from the U.S. surged by 51% this year.
- Indian Oil Corporation ordered 2 million barrels for October delivery.
- Prime Minister Modi aims to raise U.S. energy imports to $25 billion by 2025.
- Diversification of energy sources is a strategic priority for India.
- India's relationship with the U.S. extends beyond trade.
New Delhi, Aug 15 (NationPress) India is ramping up its oil acquisitions from the United States, with the Indian Oil Corporation, the nation's leading oil firm, placing orders for approximately 2 million barrels of oil in August, scheduled for delivery in October.
This latest acquisition involves another shipment of U.S. crude for October delivery, contributing to a total of around 2 million barrels purchased from the U.S. following President Trump's warning of potential additional tariffs on Indian exports, as reported by Reuters from Singapore.
In addition, India has secured 2 million barrels per day of Russian oil in August, which replaces previous orders made in June and July, aimed at addressing geopolitical tensions affecting purchases from Iraq.
The rise in Russian oil imports has come at the expense of reduced acquisitions from Iraq and Saudi Arabia, according to Kpler.
Official statistics indicate that India's oil and gas imports from the U.S. surged by as much as 51 percent between January and June of this year. The country's liquefied natural gas (LNG) imports from the U.S. nearly doubled to $2.46 billion for the financial year 2024-25, up from $1.41 billion in 2023-24.
In February, Prime Minister Narendra Modi affirmed India's commitment to enhancing energy imports from the U.S. to $25 billion by 2025, up from $15 billion in 2024, as a measure to lessen the U.S. trade deficit. This initiative led to discussions between government-backed Indian oil and gas firms for potential long-term energy agreements with U.S. companies. New Delhi is also actively diversifying its energy import sources to reduce reliance on Russian oil.
India has emphasized that its purchases of Russian oil comply with the absence of sanctions on transactions below the price cap set by the G7 nations. This aligns with U.S. policy, which supports such purchases to ensure oil availability in the market and to curb soaring international oil prices. Additionally, acquiring oil at lower prices aids in limiting Russia's revenue.
New Delhi has reiterated that India and the U.S. maintain a significant strategic partnership that transcends mere trade.
The government has pointed out that the India-U.S. relationship is multifaceted, with trade being just one component of a crucial alliance that also encompasses geopolitical and strategic factors.
The government has notified the Parliamentary Standing Committee on External Affairs that there are no alterations to the plans for the sixth round of India-U.S. discussions, which could pave the way for a trade agreement between the two nations.
Point of View
It is evident that India's escalating oil purchases from the U.S. reflect a strategic evolution in its energy policy. This pivot not only aims to mitigate geopolitical risks but also strengthens the bilateral relationship with the U.S., showcasing India's commitment to diversifying its energy sources while maintaining economic stability. The Nation stands firmly with this approach.
NationPress
19/08/2025
Frequently Asked Questions
Why is India increasing oil purchases from the U.S.?
India is increasing oil purchases from the U.S. to diversify its energy sources and reduce dependence on Russian oil amid geopolitical tensions.
How much oil is Indian Oil Corporation purchasing from the U.S.?
Indian Oil Corporation has placed orders for approximately 2 million barrels of U.S. oil for October delivery.
What are the financial implications of these purchases?
India's oil and gas imports from the U.S. have surged by 51% from January to June this year, with LNG imports nearly doubling.
What has Prime Minister Modi stated about U.S. energy imports?
Prime Minister Modi has pledged to increase U.S. energy imports to $25 billion by 2025, up from $15 billion in 2024.
How does this affect India's relationship with Russia?
India continues to purchase Russian oil within the price cap limits, balancing its energy needs while maintaining a strategic relationship with the U.S.
