India Intensifies U.S. Crude Imports Amid Trade Talks and Energy Diversification Strategy

Key Highlights

• India’s U.S. crude imports surged 34% in April, reaching 326,000 barrels/day.
• Indian refiners secure at least 6 million barrels for June delivery amid favorable WTI pricing.
• India’s move supports broader geopolitical objectives in ongoing trade negotiations with the U.S.
• WTI shipments to India in June will mark the highest since August 2024.

India Ramps Up U.S. Crude Imports Driven by Cost and Diplomatic Objectives

• While specific pricing figures are not disclosed in the current report, the notable ramp-up in U.S. crude oil imports by India suggests competitive pricing for WTI (West Texas Intermediate) relative to other global benchmarks like Brent. Historically, WTI trades at a slight discount to Brent, making it attractive for cost-sensitive refiners in Asia. 
• The increase in volume could also be supported by favorable freight rates and contractual terms offered by U.S. suppliers to Indian buyers during ongoing trade negotiations.
• The Indian Rupee is currently trading at ₹84.61 against the U.S. Dollar, showing a slight appreciation of ₹0.08. The Rupee had opened the day at ₹85.40, compared to the previous close of ₹85.41. 
• Meanwhile, crude oil prices are trending higher. Brent crude is trading at $64.26 per barrel, up by 0.54%, after opening at $64.05 and closing yesterday at $63.91. Similarly, WTI crude is currently priced at $61.37 per barrel, marking a 0.57% increase, having opened at $61.33 and closed at $61.02 yesterday.

U.S. Crude Shipments to India Reach Highest Level Since August 2024

India, the world’s third-largest oil importer, increased its daily imports of U.S. crude to 326,000 barrels/day in April, a 34% jump from March, which itself had already seen a 67% surge from February.

• This surge indicates strong demand diversification efforts by India, reducing reliance on Middle Eastern suppliers.
• The geopolitical strategy to use energy purchases as leverage in tariff discussions with the U.S. also adds urgency to these imports.
• India’s state refiners like Indian Oil Corporation (IOC) and Bharat Petroleum (BPCL) are leading this import drive, purchasing at least 6 million barrels for June delivery.
• Supply-side: The U.S. continues to offer ample export capacity, and 11.2 million barrels of U.S. crude are already en route to India, expected to arrive in June 2025, marking the highest U.S. crude shipment to India since August 2024.

Market News: Energy Imports Emerge as Key Lever in India-U.S. Trade Negotiations

India is strategically increasing U.S. crude oil imports amid ongoing trade negotiations with the U.S. to potentially mitigate reciprocal tariffs and strengthen bilateral relations.

• President Trump’s tariff policies targeting trade-surplus nations have triggered India to align energy trade as a bargaining tool.
• Statements from Indian Foreign Secretary Vikram Misri confirm that India plans to significantly increase energy purchases from the U.S. as a diplomatic gesture and economic strategy.
• Analysts see this trend not only in India but also across other Asian countries like Indonesia, as they aim to use crude oil procurement as a lever in broader geopolitical negotiations.

Expert Opinion: Higher U.S. Cargo Demand to Tighten Asia-Pacific Supply

India is expected to continue increasing U.S. crude imports in the near term, especially through Q2 and Q3 of 2025, driven by a combination of geopolitical motives, pricing advantages, and supply diversification. This could lead to tighter availability of U.S. cargoes for other buyers in the region and may influence WTI pricing and freight dynamics in the Asia-Pacific market.