India's US oil and gas imports plunge 43% as West Asian supplies surge

Indian imports of U.S. crude oil, LNG and LPG dropped to 1.22 million tonnes in September, a 43% fall from the previous month and the lowest since April, according to ship-tracking data. At the same time, imports from West Asian producers rose 67% to 13.56 million tonnes as Gulf exporters restored output near pre-war levels. Refiners cite record VLCC freight rates—over $1.5 million a day—and detours around the Horn of Africa as making U.S. medium-sour grades unattractive compared with Gulf and Russian supplies.

State-run refiners note that the Indian government has given no directive on sourcing, leaving purchases opportunistic. Ongoing hurdles in a bilateral trade agreement, highlighted by U.S. Trade Representative Jamieson Greer, further dampen prospects for higher U.S. energy sales. The situation is compounded by recent U.S. legislation allowing tariffs on countries buying Russian oil, adding another layer of complexity to India’s import strategy.