Indian Refiners Boost US Oil Purchases: Anticipating 11.2 Million Barrels Ahead of Crucial Trade Talks

Indian oil refiners are ramping up their purchases of US crude oil ahead of trade discussions set for next month. This surge is primarily due to falling West Texas Intermediate (WTI) prices, making US oil more appealing for Asian markets. According to Kpler Ltd., about 11.2 million barrels are expected to arrive in India in June—this marks the highest volume since August.

The increase in imports comes as WTI prices drop, influenced by lower demand due to refinery overhauls in Singapore and reduced purchases from China. This combination makes US crude a cost-effective option for buyers in Asia.

June Goh, a senior oil market analyst at Sparta Commodities, noted, “WTI has to be priced lower than usual to attract buyers in Asia. Also, there’s a geopolitical angle, as countries like India might use these purchases to negotiate better tariff terms with the US.”

Data shows that India’s trade deficit widened more than anticipated in March, with oil imports climbing over 60% from February. Indian exporters are pushing for a trade deal with the US, with face-to-face negotiations kicking off in May after President Trump momentarily halted a proposed 26% tariff on Indian goods.

This month alone, Indian refiners like Indian Oil Corp. and Bharat Petroleum Corp. have secured at least 6 million barrels of US crude for June delivery. Bharat Petroleum is also looking for additional spot supplies, buying another million barrels scheduled for delivery through September. Indian Oil has already begun purchasing crude for July, including 3 million barrels from the US.

Interestingly, this shift in buying patterns has resulted in a decline in imports from West Africa, a region that has typically been a key source of lighter oil for India. Traders are observing this change, indicating a strategic pivot in India’s oil sourcing.

As global energy dynamics shift, these developments highlight the interplay between market forces and international relations. Understanding how these factors affect oil prices and trade agreements can offer valuable insights for investors and policymakers alike.

For more on global oil trends and their implications, you can check out a report from the U.S. Energy Information Administration.

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Indian refiners, US oil, WTI crude, trade talks, oil imports, India, US, tariffs, energy, Bloomberg, Kpler Ltd, Industry News – Times Now