Energy Trade Realignment: India Buys More U.S. Oil, Keeps Russian Flows Steady

New Delhi, Aug 30:

India, the world’s third-largest oil importer, is recalibrating its energy trade strategy amid global price fluctuations and shifting geopolitical alliances. Official trade data for July reveals that imports of U.S. crude oil surged by nearly 20% compared to June, even as purchases from Russia remained steady, defying speculation that Moscow’s discounted supplies might decline.

According to sources in the Petroleum Ministry, the diversification reflects a deliberate policy choice by New Delhi to hedge against over dependence on a single supplier, especially at a time when energy markets are facing volatility due to the ongoing Ukraine conflict and renewed tensions in the Middle East.

Despite Western sanctions on Moscow, India has emerged as a top buyer of Russian crude, capitalizing on discounted rates since 2022. Analysts suggest that while the Russian energy corridor continues to be economically attractive, policymakers are wary of being overly exposed to possible future sanctions or sudden supply disruptions.

“Energy security is not just about cheaper prices; it is about stable and predictable access,” explained an oil sector analyst. “India is keeping Russian barrels flowing, but the tilt towards U.S. and Middle Eastern suppliers indicates a cautious balancing act.”

The surge in U.S. imports also coincides with Washington’s growing strategic outreach to New Delhi, particularly under frameworks such as Indo-Pacific partnerships and defense cooperation agreements. Experts say this dual track of energy and security cooperation could deepen India-U.S. economic ties while ensuring New Delhi maintains its autonomy in global diplomacy.

Meanwhile, refinery executives noted that U.S. crude grades are well-suited for India’s complex refineries, enabling them to produce high-value fuels for both domestic consumption and export. This makes American oil not just a strategic hedge but also a commercially viable option.

As of now, government officials insist India will continue to buy oil from “wherever it gets the best deal”, reiterating its position of non-alignment in global energy politics. However, industry watchers say the current trend signals a gradual diversification away from excessive Russian dependence, setting the stage for a more balanced and resilient energy portfolio in the months ahead.