According to WPB, India has substantially increased its crude oil imports from the United States, more than doubling recent volumes as part of a broader strategy to ease mounting trade pressure from Washington. This adjustment comes as Indian officials seek to reduce the likelihood of sweeping tariffs tied to the U.S. administration’s efforts to address trade disparities with international partners.
Data cited by the Financial Times reveals a significant decline—up to 70%—in India’s crude purchases from suppliers like Russia, Saudi Arabia, and Iraq, while imports from the U.S. have surged by approximately 120%. Despite these shifts, Russia continues to be India’s top supplier, followed by Iraq and Saudi Arabia, with the United States moving up to fourth place, displacing the UAE.
OPEC forecasts indicate India’s crude oil demand is expected to grow by 3.4% in the near term, reaching around 5.74 million barrels per day, and rising again by 4.3% shortly thereafter to nearly 6 million barrels per day. These figures stand in sharp contrast to China’s expected growth, which remains below 2% for the same period, reinforcing India’s emerging role as a leading driver of global oil consumption.
This increase in demand is being powered by India’s strong economic performance, bolstered by consumer expenditure, industrial expansion, and ongoing government incentives. Diesel continues to be the primary contributor to this trend, supported by accelerated highway development and the expansion of transportation and petrochemical industries. Bitumen usage is also on the rise due to the country’s widespread infrastructure initiatives.
At the same time, India is working to prevent the implementation of a proposed 26% tariff on all its exports to the U.S., and aims to finalize a trade agreement soon. Increasing energy imports from the United States is viewed as a tactical move to foster diplomatic goodwill, which could lead to further growth in American crude shipments to India in the foreseeable future.
By Bitumenmag
Crude, Oil, Petroleum, Bitumen
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