US Becomes India’s Fifth-Largest Oil Supplier in January as Russian Imports Hold Strong

India’s crude oil imports from the United States surged significantly in January, making the U.S. the fifth-largest supplier to the world’s third-biggest oil consumer. The latest trade data reveals that India imported 218,400 barrels per day (bpd) of American crude, a sharp rise from just 70,600 bpd in December. This jump aligns with New Delhi’s broader strategy to expand its energy trade with Washington, aiming to boost purchases from $15 billion last year to $25 billion.

Meanwhile, Russia maintained its position as India’s top crude supplier, with imports rising 4.3% month-on-month to 1.58 million bpd. However, these volumes may face downward pressure in the coming months as Indian refiners reassess their strategies following fresh U.S. sanctions on Moscow. With Washington tightening restrictions on Russian crude transactions, Indian refiners will now be more cautious, limiting their purchases to shipments that avoid sanctioned companies and transport routes.

The evolving geopolitical landscape has also influenced India’s crude sourcing. Imports from the Middle East climbed 6.5% in January, reaching 2.7 million bpd. Iraq continued as India’s second-largest oil supplier, followed by Saudi Arabia and the UAE. The share of Middle Eastern crude in India's total oil imports rose to a 27-month high of 53%, reflecting a shift away from Russian oil amid rising sanctions.

This diversification in energy sourcing comes as Indian refiners adjust their procurement strategies. The Indian government had reportedly advised refiners to prepare for potential U.S. sanctions on Russian oil before they were formally announced, prompting a pivot to non-Russian sources.

Overall, India’s crude oil imports averaged 4.8 million bpd in the first 10 months of the current fiscal year (April 2024–January 2025), reflecting a 4.5% increase compared to the previous year. With energy security and price competitiveness at the forefront, India continues to balance its crude basket by leveraging supplies from Russia, the Middle East, and now increasingly from the United States.