India Boosts US Crude Oil Imports, Displacing UAE as Key Supplier

India's crude oil imports from the United States surged to a record 568,000 barrels per day (b/d) in October 2025, according to data and analytics firm Kpler. This significant increase has enabled the US to dislodge the United Arab Emirates (UAE) as New Delhi's fourth-largest crude oil supplier, a position the UAE had held for the past six months. Analysts project that imports from the US will continue at high levels, averaging between 450,000–500,000 b/d in November 2025, compared to a year-to-date average of around 300,000 b/d.

Kpler's Lead Research Analyst, Sumit Ritolia, noted that these shipments were likely contracted before recent US sanctions on Russian oil companies, suggesting the current spike is not sanctions-driven. Instead, it reflects India's strategic efforts towards diversifying its energy supply and enhancing energy security. Data from the US Energy Information Administration (EIA) also confirms a rising trend in US crude oil exports to India.

The increase is primarily driven by favorable market economics, including a strong arbitrage window and a wider Brent-WTI spread, coupled with weaker demand from China, which made US WTI Midland crude competitive on a delivered basis. However, analysts caution that further substantial upside may be limited due to longer voyage times, higher freight costs, and the specific yield characteristics of WTI crude (lighter and naphtha-rich).

Impact: This development is strategically significant for India, reinforcing deepening energy ties with the US. It aids in narrowing India's trade deficit with the US and aligns with New Delhi's broader goal of diversifying its energy supply chains to balance security, economics, and geopolitics. The rise in US crude imports also complements India's strategy of diversifying its crude basket with supplies from both the US and African nations.

Rating: 8/10

Heading: Difficult Terms Explained Crude Oil: Unrefined petroleum that is extracted from the ground and processed to make various fuel products like gasoline and diesel. Supplier: A country or company that provides a commodity or service. Arbitrage Window: A market situation that allows for profiting from price differences of the same asset in different markets or forms. Brent-WTI Spread: The price difference between two major global oil benchmarks: Brent crude (global) and West Texas Intermediate (WTI) crude (US domestic). WTI Midland: A specific grade of crude oil produced in the Midland region of the Permian Basin in Texas, US. It is typically light and sweet. Naphtha-rich Yield: Refers to crude oil that, when refined, yields a higher proportion of naphtha, a key component in gasoline production and petrochemicals. Trade Deficit: The difference between the value of a country's imports and exports, where imports exceed exports. Energy Security: The reliable and affordable supply of energy to meet a nation's economic and security needs. Diversification: The practice of spreading investments or sources of supply across different assets or regions to reduce risk.