US oil and gas imports to India plummet 43% as West Asia regains ground

American oil and gas supplies to India have fallen sharply by 43 per cent as refiners reassess their sourcing strategies in favour of more accessible alternatives from West Asia and Russia.

The shift reflects a confluence of economic factors making US barrels significantly less competitive in the Indian market. Industry refiners cite elevated freight costs associated with longer transoceanic voyages from the US Gulf Coast, combined with constrained availability of medium sour crude grades preferred by Indian refineries, as key deterrents to US purchases.

West Asian suppliers, particularly Saudi Arabia and other Gulf producers, benefit from geographical proximity to Indian ports, resulting in substantially lower transportation expenses and shorter transit times. Russian crude, despite geopolitical complexities, continues to offer price advantages that offset logistical challenges.

The reorientation underscores the price-sensitive nature of India's refining sector, where margins remain tight and sourcing decisions are heavily influenced by total delivered costs rather than crude origin alone. Refiners have indicated that until either US freight economics improve or crude quality availability shifts toward medium sour specifications, the current preference for West Asian and Russian supplies is likely to persist.

India, a major global crude importer, has historically diversified its supply portfolio to mitigate risk, but economic fundamentals are now driving a pronounced recalibration toward shorter-haul suppliers.