India's Crude Oil Imports Rise 1.7% in September Amid Diversification from Russia

India's crude oil imports from the United States surged to their highest level since 2022, reaching about 540,000 barrels per day by late October as part of New Delhi's strategy to diversify sources away from Russia and ease trade tensions with the Trump administration. Despite this surge, Russia remains India's largest crude supplier, accounting for a third of imports, though shipments from Russia have declined by 8.4% from April to September due to narrowing discounts, supply constraints, and tightening U.S. sanctions targeting major Russian oil companies Rosneft and Lukoil. Indian refiners are increasing purchases of U.S. grades like Midland WTI and Mars and have also made rare imports from Exxon Mobil's Guyanese crude, reflecting efforts to adapt to geopolitical shifts and sanctions. Overall crude imports rose 1.7% month-on-month and 6.1% year-on-year in September, with petroleum product imports also rising sharply, underscoring robust energy demand. The reduction in Russian oil imports is seen as a move to comply with U.S. sanctions and potentially facilitate a broader trade deal that could lower tariffs imposed by the Trump administration on Indian goods. However, replacing discounted Russian oil with other sources is expected to increase India's oil import bill and impact energy costs domestically.