India Increases U.S. Oil Imports Amid Global Energy Shifts

India, the world’s third-largest oil importer, has sharply increased its oil imports from the United States, signaling a major shift in global energy trade. In January, India imported 218,400 barrels per day (bpd) of U.S. crude, a significant rise from 70,600 bpd in December. This surge comes as New Delhi aims to boost its total energy purchases from Washington to $25 billion this year, up from $15 billion in 2024.

This increase is driven by a combination of economic strategy and shifting geopolitical realities. As U.S. sanctions on Russian oil tighten, India is diversifying its supply chains, looking toward the Middle East, Africa, and the Americas to secure stable energy sources.

Russia Remains India’s Top Supplier, but Sanctions Weigh Heavily

Despite its growing imports from the U.S., Russia remains India’s largest oil supplier, with deliveries rising 4.3% to 1.58 million bpd in January. However, U.S. sanctions are starting to reshape trade patterns. With Washington’s latest restrictions targeting Russian oil firms, shadow fleet tankers, and financial institutions, Indian refiners are now reconsidering the risks of purchasing Russian crude.

Industry reports suggest that Indian refineries will likely cut Russian oil imports in the coming months, opting instead for non-sanctioned suppliers. The growing complexities of oil trade, coupled with rising freight costs for shipments to India and China, are prompting buyers to secure alternative energy sources.

Middle Eastern Oil Imports at a 27-Month High

India is also turning to the Middle East for crude, with imports from the region increasing 6.5% in January to 2.7 million bpd. Iraq remains India’s second-largest oil supplier, followed by Saudi Arabia and the UAE.

In total, Middle Eastern crude accounted for 53% of India’s oil imports in January, marking a 27-month high. Analysts attribute this shift to Indian refiners preemptively reducing their Russian oil purchases after receiving early warnings from the government about impending U.S. sanctions.

The STW Enviro Perspective: Navigating the Evolving Energy Landscape

At STW Enviro, we see these shifts in global oil trade as a reminder of the importance of resilient supply chains and sustainable transport solutions. As major energy players adjust to new geopolitical realities, the demand for secure, efficient, and environmentally responsible logistics solutions continues to grow.

The increased reliance on U.S. and Middle Eastern oil means longer shipping routes, raising concerns about oil spill risks, marine traffic congestion, and fuel transport safety. Our Pristine Sea technology plays a critical role in rapid spill response and containment, ensuring that these growing trade flows do not come at the cost of marine ecosystem health. Additionally, TransSeal helps stabilize critical energy infrastructure, reducing risks associated with logistical disruptions and supply chain bottlenecks.

As India continues to diversify its oil imports, maintaining safety, efficiency, and environmental responsibility in transport and storage will be key to sustaining a stable and secure energy future.