India asks US to greenlight Iranian oil Imports over Russian crude – Bloomberg
Photo: India wants to buy oil from Iran instead of Russia (Getty Images)
Almost 90% of India's oil needs are covered by imports. They want to replace cheap Russian oil with equally cheap Iranian oil, Bloomberg reports.
Indian officials have again told Donald Trump's administration that a significant reduction in Russian oil imports is only possible if they are allowed to buy from Iran and Venezuela.
A delegation that visited the US this week confirmed this request at meetings with American representatives, according to sources familiar with the negotiations.
According to them, the Indian side stressed that the simultaneous cessation of oil supplies from Russia, Iran, and Venezuela could cause global prices to rise.
Pressure from Washington
The trip by Indian representatives to the US came after Washington imposed tough tariffs on the country for trading oil with Russia. Despite the sanctions, India continues to purchase Russian oil, albeit in smaller volumes.
Indian Trade Minister Piyush Goyal said in New York that the country intends to increase purchases of American oil and gas. "Our energy security goals will have a very high element of US involvement," he says.
Russian oil and Indian imports
Russia was forced to sell oil at a discount after many countries refused to trade with Moscow because of the war against Ukraine.
Almost 90% of India's oil needs are covered by imports, and cheaper Russian supplies have helped reduce excess profits. Similar discounts could also be offered by oil from Iran and Venezuela.
India stopped purchasing Iranian oil in 2019, and the largest private company, Reliance Industries Ltd., stopped imports from Venezuela this year due to tougher US sanctions. Additional purchases in the Middle East are possible, but they will be more expensive.
Prices and market prospects
According to India's Ministry of Commerce, the average price of Russian oil in July was $68.90 per barrel. For comparison, oil from Saudi Arabia costs $77.50, and from the US, $74.20.
India remains the largest buyer of Russian oil delivered by tankers, while China leads in total purchases, including pipeline deliveries.
The oil market in 2026 may face an oversupply due to increased production by OPEC+ countries and independent producers. This could put pressure on global prices.
In his speech at the UN General Assembly, US President Donald Trump called India and China the biggest sponsors of Russia's war against Ukraine, as these two countries buy the bulk of Russian oil.
In August, Donald Trump imposed a 50% tariff on New Delhi for supplying Russian oil to India. He accused businesses of profiteering and spoke of Modi's war.
