Due to a sharp rise in imports from 70,600 barrels per day (bpd) in December 2024 to 218,400 bpd in January 2025, the United States became India’s fifth-largest oil supplier.
India’s strategic decision to diversify its energy sources in the face of continuous geopolitical tensions and sanctions hurting Russian oil supplies is reflected in this increase in imports.
Russia continued to be India’s largest oil supplier, with imports increasing 4.3% to 1.58 million barrels per day over the same time period.
New U.S. sanctions against Russian oil producers and transport vessels are predicted to reduce India’s purchases of Russian oil in the upcoming months. Due to these sanctions, which have had a major effect on the world’s oil trade, Indian refiners are only allowed to buy Russian oil from businesses and vessels that the US has not sanctioned.
India bought about 1.58 million barrels of Russian oil per day (bpd) in January 2025, a modest rise from December, but refiners are currently dealing with
The impact of these sanctions is expected to become more pronounced by March 2025 when existing contracts will need to be fulfilled under the new compliance rules. Indian Oil Corporation Limited has indicated that it may reduce its reliance on Russian crude if it cannot secure compliant shipments. Consequently, Indian refiners are likely to shift their focus towards other suppliers, including those from the Middle East and the United States, as they seek to diversify their sources amid rising uncertainties surrounding Russian oil supplies.
Overall, while India’s imports from Russia surged significantly in previous months due to discounted prices, the recent sanctions are likely to curtail this trend and lead refiners to explore alternative sources for crude oil.
India’s overall oil imports in January reached approximately 5.1 million bpd, with Middle Eastern oil accounting for about 53% of this total, marking a 27-month high. Iraq remained the second-largest supplier, followed by Saudi Arabia and the United Arab Emirates.
The Indian government aims to increase energy purchases from the U.S. to $25 billion this year, up from $15 billion last year.
