India set to ramp up oil imports from Russia, Africa, US and Latin America
India, the world’s third-largest crude oil importer, is shifting its energy strategy in a big way. In response to global volatility—particularly in the Middle East and due to sanctions on Russia—India is ramping up oil imports from non-traditional regions like Africa, the United States, and Latin America. This move not only secures India’s energy needs but also marks a new chapter in its global energy diplomacy.
🔄 Why the Shift? A Perfect Storm of Geopolitical Pressure
Traditionally, India has sourced the majority of its crude oil from the Middle East—especially countries like Saudi Arabia, Iraq, and the United Arab Emirates. However, recent instability in the Gulf, particularly following the escalation of the Israel-Iran conflict, has raised concerns about the reliability of supply chains via the Strait of Hormuz.
At the same time, increasing sanctions by Western nations on Russian oil exports have limited Russia’s traditional market access in Europe. India, taking advantage of discounted rates, emerged as a significant buyer of Russian Urals crude. Despite minor fluctuations due to payment and insurance hurdles, Russia remains a top supplier to India.
But India isn’t relying on Russia alone. Recent months have shown a clear trend—India’s energy portfolio is rapidly diversifying.
🌍 Africa and Latin America: The New Frontiers
In early 2025, India’s crude imports from Africa doubled. Nations like Nigeria, Angola, Gabon, and Libya are now key players in India’s supply basket. These countries offer sweet crude grades that are well-suited for Indian refiners.
Latin America, too, has emerged as a strong partner. Countries such as Brazil, Colombia, Venezuela, and even Argentina are now sending significant volumes of oil to Indian shores. Argentina’s Medanito crude, for example, arrived in India for the first time this year, showcasing the broadening of trade routes.
This diversification not only reduces dependence on the Middle East but also enhances India’s leverage in global oil negotiations.
🇺🇸 Rising Imports from the US: Strategic and Economic Sense
The United States has grown into a reliable energy partner for India. American shale oil producers, looking to expand their global presence, have found a solid market in India. Indian refiners are particularly interested in light sweet crude from Texas and the Gulf Coast, which blend well with heavier grades from elsewhere.
Recent data shows that U.S. crude exports to India hit their highest level since 2022. Strategic energy cooperation between the two countries has been growing steadily, backed by diplomatic ties and long-term contracts.
📊 Numbers That Tell the Story
- Russian oil remains the single largest source, accounting for roughly 35% of India’s total crude imports in the first half of 2025.
- African imports surged to over 330,000 barrels per day (bpd) in Q1 2025, up from just 143,000 bpd a year earlier.
- Latin American imports rose over 60%, reaching around 450,000 bpd.
- U.S. oil imports climbed back to pre-pandemic levels, exceeding 300,000 bpd in June 2025.
These shifts aren’t short-term anomalies—they reflect a calculated long-term policy pivot.
🛢️ What This Means for India
India’s diversification in crude sourcing is driven by three core goals:
- Energy Security – Reducing reliance on any single region shields India from geopolitical shocks.
- Economic Advantage – Buying from multiple suppliers lets India bargain better rates and blend different grades of crude to optimize refining.
- Strategic Leverage – With a broader import base, India strengthens its geopolitical hand, especially in bilateral energy discussions.
🤝 The Future of Energy Diplomacy
Beyond purchasing crude, India is also investing in upstream oil assets in Africa and Latin America. Public sector giants like ONGC Videsh have stakes in oil fields across Mozambique, Venezuela, and Brazil. These investments ensure not just current supply, but long-term security through equity oil.
Additionally, India is exploring more long-term contracts and swaps to avoid volatility in spot markets. Collaborations with nations in South America and Africa are also extending into LNG, refining technology, and infrastructure development.
📉 Risks and Challenges
Despite the promising outlook, several risks remain:
- Payment hurdles due to sanctions on Russia could disrupt supply chains.
- Shipping costs from Latin America and Africa are higher than from the Middle East.
- Political instability in parts of Africa and Latin America could impact reliability.
Yet, India’s diversified approach serves as a cushion against such uncertainties.
🔚 Conclusion: A New Energy Era for India
India’s move to expand its oil import base beyond traditional partners is a pragmatic and strategic response to global disruptions. While Russia remains a key player, increasing imports from Africa, the United States, and Latin America mark a new, flexible, and forward-looking energy strategy.
In a volatile world, India is choosing resilience and long-term stability—one barrel at a time.
