On August 15, 2025, Reuters reported that Indian Oil Corporation (IOC), India’s largest oil company, bought around 2 million barrels of US crude, including a cargo of West Texas Intermediate (WTI), for October delivery. This follows US President Donald Trump’s threat to impose tariffs on Indian exports if India continues buying Russian oil. Official data shows India’s oil and gas imports from the US jumped 51% from January to June 2025, with liquefied natural gas (LNG) imports nearly doubling to $2.46 billion in FY 2024-25 from $1.41 billion the previous year. An X post from @Reuters said, “India’s IOC buys 2M barrels of US crude for Oct delivery!”
US oil imports up 51%? That’s a big jump!
Russian Oil Still Flows
Despite US pressure, India imported 2 million barrels per day of Russian oil in August 2025, ordered in June and July, to replace supplies from Iraq due to Middle East tensions, per Kpler. This reduced purchases from Iraq and Saudi Arabia. India’s government noted that Russian oil purchases are legal under the G7 price cap, helping keep global oil prices stable while limiting Russia’s earnings. IOC’s chairman, AS Sahney, said, “We buy based on economics, not politics.” An X post from @CNBCTV18Live noted, “India’s US oil imports to more than double in FY26!”
Buying Russian oil to keep prices low? Smart move!
Diversifying Energy Sources
Prime Minister Narendra Modi promised in February 2025 to increase US energy imports to $25 billion in 2025 from $15 billion in 2024 to cut the US trade deficit. Indian state-owned companies are negotiating long-term US deals to diversify from Russian oil, which accounts for about 30% of India’s needs. The government stressed that India-US ties go beyond trade, covering strategic and geopolitical goals. New Delhi told the Parliamentary Standing Committee on External Affairs that the sixth round of India-US trade talks is on track, possibly leading to an agreement.
More US oil to balance trade? India’s playing it smart!