US becomes India’s fifth largest crude supplier: report

The US became India’s fifth-largest crude supplier in January after New Delhi considerably stepped up its oil imports from Washington, Reuters reported on Tuesday, citing trade data.

The development comes even as India last week agreed to hike its oil and gas imports worth as much as $25 million—up from last year’s $15 million—from the US to narrow the trade deficit between the two countries and avoid retaliatory tariffs threatened by US President Donald Trump.

In January, oil imports from the US hit 218,400 barrels per day (bpd)—a sharp increase from the 70,600 bpd reported in December, according to the Reuters report.

Trump signed an executive order on “reciprocal tariffs” on 13 February, targeting India and others in his ‘fair and reciprocal’ tariff plan.

Less than a month since assuming the Oval Office, Trump has been on a spree to threaten countries with “reciprocal tariffs” for charging “unfair” taxes to the US.

Russia, which is facing bitter sanctions from the West, including the US, remained India’s top oil supplier last month, Reuters reported.

It increased its crude shipments to India by 4.3%, reaching 1.58 million bpd. However, Indian refiners are likely reduce their purchases soon, buying only from suppliers not affected by US sanctions.

Sanctions on Moscow, majorly imposed due to its war with Ukraine, have disrupted global oil trade. This has led buyers of discounted Russian crude to explore alternative methods.

Oil imports from the Middle East made up about 53% of India’s total crude imports last month, the highest in 27 months, as total imports reached 5.1 million bpd, data showed. Meanwhile, Russia’s share remained almost the same as in December.

Indian refiners began buying from different sources after the government warned about upcoming US sanctions on Russia.

From 1 April 2024 to January 2025, India’s oil imports grew by 4.5%, averaging 4.8 million barrels per day, according to trade data.