TNI Bureau: India has asked its state-owned oil refiners to consider increasing purchases of crude oil from the United States and Venezuela following a trade deal announced by the Trump administration. The move comes amid scrutiny over India’s oil imports after US President Donald Trump claimed that New Delhi had agreed to stop buying Russian crude as part of the deal, a statement that India has not publicly confirmed.

Refinery executives familiar with the matter said refiners have been urged to give preference to US crude grades when sourcing oil through spot market tenders. A similar request has been made regarding Venezuelan crude, although such supplies are expected to be arranged through private negotiations with traders rather than open tenders.

India has maintained that its oil-buying strategy is guided by the need to diversify supply sources and ensure energy security. However, industry officials said there are practical limits to how much US and Venezuelan crude Indian refiners can absorb.

US crude is typically light and sweet, with lower sulphur content, while many Indian refineries are designed to process medium-grade crude. Cost considerations are also significant, with refinery executives expressing doubts over the economic viability of importing larger volumes from the US in the near term due to higher freight rates associated with long-distance shipments.

Indian refiners also have access to cheaper alternatives from regions such as West Africa and Kazakhstan, which benefit from shorter shipping routes. Industry officials said Indian processors could potentially import around 20 million tonnes of US crude annually, or about 400,000 barrels per day. This would still be higher than last year’s levels, when daily imports averaged about 225,000 barrels, according to Kpler estimates.

Meanwhile, the Trump administration has appointed trading firms Vitol Group and Trafigura Group to market Venezuelan crude after asserting control over the country’s energy sector. Indian buyers, including Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation, have recently purchased around 4 million barrels of Venezuelan oil.

Refinery executives said this volume is close to the maximum quantity of heavy, sour Venezuelan crude that state refiners can process each month given existing technical limitations.