India Steps Up U.S. Oil Purchases to Curb Trade Deficit Amid Tariff Tensions

ENA Global 2025-08-29 18:23:22 New Delhi, Aug 29 (KNN) In August 2025, Indian refiners substantially ramped up purchases of U.S. crude oil, spurred by competitive pricing and an opportune arbitrage window, in a strategic move aimed at reducing the trade deficit with the United States. The surge comes amidst escalating trade tensions, including a recent doubling of U.S. tariffs on Indian exports from 25% to 50%, tied to India's continued purchase of Russian oil. State-owned Indian Oil Corporation (IOC) led the charge by acquiring 5 million barrels of U.S. West Texas Intermediate (WTI) crude, slated for delivery in October and November. Bharat Petroleum Corporation (BPCL) secured 2 million barrels, while Reliance Industries purchased another 2 million barrels from trader Vitol. European traders have also played a role: Gunvor and Equinor each supplied 2 million barrels to IOC, and Mercuria contributed 1 million barrels. Meanwhile, BPCL has diversified further by buying its first Nigerian Utapate crude as it broadens its supply base. This trend reflects a larger pivot in India's energy strategy. Earlier this month, year-to-date data showed U.S. crude imports were up 51% compared to 2024, with increases mounting to 114% in the April June quarter alone. U.S. crudes share of Indias overall imports grew from just 3% last year to 8% by July. The uptick in purchases, driven by both cost advantages and geopolitical pressures, aligns with India's broader energy diversification efforts and its attempts to mitigate the fallout from Washington's tariff escalation. (KNN Bureau) 43334 https://knnindia.co.in/news/newsdetails/global/india-steps-up-us-oil-purchases-to-curb-trade-deficit-amid-tariff-tensions 2025-08-29 18:23:22 knnindia.co.in India Steps Up U.S. Oil Purchases to Curb Trade Deficit Amid Tariff Tensions