Indian oil refiners have ramped up imports of U.S. crude this month, attracted by favourable price spreads, according to trade sources— a move that may help narrow New Delhi’s trade deficit with Washington during a period of heightened economic tensions.
Leading the buying spree, Indian Oil Corp (IOC), the nation’s largest refiner, sealed deals to bring in 5 million barrels of U.S. West Texas Intermediate (WTI) crude for October and November delivery through a recent tender, insiders familiar with the matter said.
State-run Bharat Petroleum Corp (BPCL) also stepped in, securing 2 million barrels, while private player Reliance Industries acquired 2 million barrels from trading house Vitol, the sources added.
Asian buyers have collectively boosted their U.S. oil purchases this month, capitalizing on a lucrative arbitrage window. The renewed buying comes as the U.S. raised tariffs on Indian goods to 50% in response to India’s continued imports of Russian oil, raising pressure on New Delhi to fortify energy trade with Washington.
European trading firms Gunvor and Equinor each supplied 2 million barrels to IOC, with Mercuria contributing another 1 million.
In an effort to diversify feedstocks, BPCL has also made its first foray into Nigerian Utapate crude, further broadening its supply base, sources noted.
