India shifts oil imports from Russia to US:Govt urges state firms to buy US crude after trade deal

After a new trade agreement between India and the United States, the Indian government has encouraged the country’s state-owned oil refiners to look at importing more crude oil from the U.S. and Venezuela instead of relying heavily on Russian supplies. This push follows comments from U.S. leaders about India’s promise to reduce or stop buying Russian oil as part of the broader trade deal. The suggestion is part of a wider effort to diversify India’s energy sources and strengthen ties with the U.S., Bloomberg reported, though New Delhi has said its decisions on oil purchases will continue to be guided by national interest and market conditions.
Preparation to import crude through private deals The government has told companies that whenever they buy oil from the spot market through tenders, they should prioritize American oil. The government has made a similar request regarding Venezuelan crude oil. However, Venezuelan oil will be procured through private negotiations with traders. The government said – Country’s energy security first The US President had said that India has agreed to stop taking Russian crude oil as part of a trade deal. However, India has not yet publicly responded directly to this claim. India has maintained that it is diversifying its oil sources, and the country’s energy security is its biggest priority. 2 Big Challenges in Procuring American Oil Experts say that it is not that easy for Indian refineries to procure American and Venezuelan oil on a large scale. There are two main reasons for this: Government Companies Imported 4 Million Barrels of Crude Recently, government companies like IOC, BPCL, and HPCL have purchased approximately 4 million barrels of oil from Venezuela. Following US control over the Nicolas Maduro government, major companies like Vitol and Trafigura are now marketing Venezuelan oil. Reliance, a private sector giant, has also purchased a consignment of oil from Venezuela for the first time since mid-2025. Aim to almost double oil imports from the US Indian refiners can import approximately 400,000 barrels of oil per day from the US every year. This would be significantly higher than last year’s 225,000 barrels per day. However, this depends on the price and diplomatic relations with Russia. Currently, the Ministry of Petroleum and government oil companies have refused to comment officially on the matter. India stopped taking oil from Venezuela after 2019 The US imposed sanctions on Venezuela in 2019. Due to this, many countries, including India, stopped buying Venezuelan oil. Venezuela is a member of the Organization of the Petroleum Exporting Countries (OPEC). It has the world’s largest oil reserves, but it supplies only about 1% of the global supply. India resumed buying Venezuelan oil in 2024 The US partially eased sanctions on Venezuela for some time (in 2023-2024), allowing India to buy oil from Venezuela again. Knowledge Box: What is Light-Sweet and Heavy-Sour Crude?