Indian refiners have increased their purchases of American crude this month as falling prices made US oil more attractive, even though the Donald Trump administration has imposed 50% tariffs on Indian exports to the United States.

According to a Reuters report, these imports could help narrow India’s trade deficit with Washington at a time when bilateral relations are strained.

India’s largest refiner, Indian Oil Corp, has booked 5 million barrels of US West Texas Intermediate crude for delivery in October and November, sources told Reuters. Earlier this year, IOC had also secured 7 million barrels of the same grade from foreign traders for loading between April and May.

The report said Bharat Petroleum Corp bought 2 million barrels of US WTI crude, while Reliance Industries purchased another 2 million barrels from trading firm Vitol.

Asian buyers, including India, stepped up purchases as US crude turned regionally competitive. India has also faced stronger pressure to buy American oil after Washington raised tariffs on Indian imports to 50% in response to New Delhi’s continued purchases of Russian crude.

Sources noted that European companies Gunvor and Equinor sold 2 million barrels each to IOC, while Mercuria supplied another 1 million barrels. Bharat Petroleum, meanwhile, bought Nigerian Utapate crude for the first time, signalling efforts to diversify its supply basket with new grades.

Still, despite higher American imports this month, India is sticking to its independent approach of maintaining Russian crude purchases.

External Affairs Minister S Jaishankar last week hit back at US criticism of India’s continued imports from Moscow. "It's rich to have individuals who work for a pro-business American government complaining about others conducting business. If you object to purchasing oil or refining products from India, don't purchase it. Nobody is compelling you to purchase it. Europe purchases, America purchases, so you don't like it, don't purchase it," Jaishankar said.

Meanwhile, another Reuters report said Indian refiners are preparing to increase Russian crude imports in September.

India has emerged as the biggest buyer of Russian oil since Western sanctions were imposed on Moscow after its 2022 invasion of Ukraine, helping refiners secure supplies at cheaper rates.

Market sources cited in the report said Indian refiners plan to raise September imports of Russian oil by 10 to 20 per cent compared to August, equal to an additional 150,000 to 300,000 barrels per day.