News Arena

Home

Nation

States

International

Politics

Opinion

Economy

Sports

Entertainment

Trending:

Home
/

indian-refiners-boost-us-crude-buys-before-trade-talks

Economy

Indian refiners boost US crude buys before trade talks

Indian oil refiners are ramping up imports of American crude ahead of key bilateral trade discussions with the United States set for May, with June shipments forecast to reach an 11-month high.

News Arena Network - New Delhi - UPDATED: April 29, 2025, 03:56 PM - 2 min read

US oil imports to India set for 11-month high.


Indian oil refiners are ramping up imports of American crude ahead of key bilateral trade discussions with the United States set for May, with June shipments forecast to reach an 11-month high.

 

The increase is being driven by a combination of discounted West Texas Intermediate (WTI) prices and a strategic geopolitical move as India seeks to ease reciprocal tariffs and address its widening trade deficit.

 

Provisional data from energy analytics firm Kpler Ltd shows that approximately 11.2 million barrels of US crude are scheduled to arrive in India in June – the highest volume since August 2023.

 

The spike follows a drop in WTI prices, prompted by reduced demand from a major refinery overhaul in Singapore and sluggish crude appetite in China, the world’s largest oil importer.

 

“WTI has to discount significantly more than usual to incentivise the rest of Asia to take in the barrels,” said June Goh, senior oil market analyst at Sparta Commodities.

 

“There is also a geopolitical element, where Asian buyers may seek more WTI as a negotiating tool with the US to reduce the reciprocal tariffs, as we are observing with Indonesia and India.”

 

India’s trade deficit widened more than anticipated in March, largely driven by a 60 per cent month-on-month increase in oil imports. The country’s exporters have urged the government to secure a bilateral trade agreement with Washington at the earliest.

 

Formal, in-person negotiations are expected to commence in the second half of May, following President Donald Trump’s recent decision to delay a proposed 26 per cent tariff on Indian goods.

 

State-owned oil companies, including Indian Oil Corporation and Bharat Petroleum Corporation, have collectively procured at least 6 million barrels of US-origin crude for delivery in June through multiple tenders this month, according to calculations by Bloomberg.

 

Bharat Petroleum has reportedly purchased 1 million barrels for delivery between now and September, while Indian Oil has begun securing cargoes for July as well, including an additional 3 million barrels from the US.

 

Neither company responded to media requests, citing a communications freeze due to the imminent release of quarterly earnings.

 

Private sector giant Reliance Industries, a consistent buyer of American oil, is also expected to make purchases, although specific volumes for upcoming months remain unclear.

 

The increase in US crude imports is displacing oil supplies from West Africa, traditionally one of India’s main sources of lighter crude.

 

According to industry traders, the shift reflects both a pricing advantage and an attempt to curry favour with Washington ahead of sensitive trade talks.

 

Related Tags:#Tariff War

TOP CATEGORIES

  • Nation

QUICK LINKS

About us Rss FeedSitemapPrivacy PolicyTerms & Condition
logo

2025 News Arena India Pvt Ltd | All rights reserved | The Ideaz Factory