October 24, 2026: US Secretary of State Marco Rubio has asked India to buy more US and Venezuelan oil during his visit to India. Senior refining officials, government data and shipping data offer a glimpse into the viability of US oil and gas supplies for Indian refiners.
Currently, US crude is unaffordable for Indian refiners, while Venezuelan oil offers value, but mainly for private sector Reliance Industries and provided Washington allocates supplies, according to Indian government data and industry sources.
US crude was the most expensive for Indian refiners in August, the latest Indian customs data providing country-wise details showed. September and October data indicate similar trends
Senior refining officials told Business Standard that they had substantially slowed purchases of US crude in the past few months because of record freight rates.
“The volumes (US) are much smaller than we saw earlier in the year and the economics are punishing,” said Aaron Kudlow, crude commodity owner at UK-based Sparta Commodities. “The arb for US barrels into the Far East remains closed for January delivery.”
Indian refiners paid the highest premium of $21 per barrel to the Indian Crude Basket (ICB), calculated on a delivered basis, for US crude in August. Premiums were at similar levels in July, explaining why Indian imports of US grades have slowed in recent months despite Washington’s push for higher purchases and the crisis in West Asia.
(Source: Business Standard)
To download the latest issue 'Volume 33 Issue 12 - September 25, 2026', click here |