Trade Rift: India Picks Nigerian Crude Over U.S. Supplies
India has turned to Nigeria and the Middle East for its latest crude purchases, bypassing the United States as trade tensions with Washington deepen.
Trading sources told Reuters that the Indian Oil Corporation (IOC) excluded American crude in its latest tender, securing two million barrels from Nigeria and another one million barrels of Abu Dhabi’s Das grade from Shell.
The Nigerian cargoes — Agbami and Usan grades — were sourced from TotalEnergies and are due to arrive at Indian ports between late October and early November.
The move marks a sharp shift from IOC’s previous tender in which it bought five million barrels of U.S. West Texas Intermediate (WTI).
Nigeria, which has recently raised its production above 1.7 million barrels per day (bpd) for the first time in seven months, is benefitting from improved security in the Niger Delta.
According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), oil theft has dropped from about 300,000 bpd to fewer than 5,000 bpd.
Rig activity is also on the rise, with 46 rigs active compared to just eight in 2021. The renewed interest, particularly in deepwater exploration, is seen as critical for Nigeria’s economy since crude exports account for around two-thirds of government revenue and more than 80 per cent of foreign exchange inflows.
For India, the pivot reflects a broader shift in its energy strategy. Since 2022, New Delhi has been the largest seaborne buyer of Russian oil, a move that has sparked friction with Washington. Former U.S. President Donald Trump, now back in office, recently imposed a 50 per cent tariff on Indian goods, accusing New Delhi of indirectly funding Moscow’s war through its oil purchases.
U.S. Treasury Secretary Scott Bessent also accused India of reselling refined fuels from discounted Russian crude at higher prices.
Despite the pressure, India has remained defiant. Finance Minister Nirmala Sitharaman said on CNN-News18 that the world’s third-largest oil importer would continue to “buy from the place which suits our needs — whether in terms of rates or logistics.”
“Whether it is Russian oil or anything else, it’s our decision,” she said. “We spend most of our foreign exchange on crude oil and refined fuels. We will undoubtedly be buying it.”
Washington has urged New Delhi to resume trade talks and align closer with U.S. policy. U.S. Commerce Secretary Howard Lutnick said on Friday: “We’re always willing to talk… We are the consumers of the world.”
Crude oil and refined fuels made up about a quarter of India’s overall imports in the fiscal year ending March 2025, underlining their central role in the country’s trade and foreign policy.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
