India Seeks Weekly Oil Import Data Amid US Trade Talks

Background on India-US Trade Negotiations

India has requested its refineries to submit weekly data on crude oil imports from both Russia and the United States. This move comes as New Delhi engages in sensitive trade negotiations with Washington. The data collection is being led by India's Petroleum Planning and Analysis Cell (PPAC) under the Ministry of Petroleum. The information is reportedly required by Prime Minister Narendra Modi's office to facilitate the ongoing trade discussions.

Strategic Importance of Oil Import Data

The request for weekly import data is seen as a strategic move to address concerns raised by the United States regarding India's increasing oil purchases from Russia. Since the onset of the Ukraine conflict in 2022, India has emerged as the largest buyer of Russian crude oil, with imports surpassing 1 million barrels per day. This surge has triggered strong reactions from Western nations, which have imposed sanctions on Russia's energy sector, arguing that the oil revenues fund Moscow's war efforts.

Trade Implications and US-India Relations

The United States has been working to reduce its trade deficit with India and had doubled import tariffs on Indian goods to 50% last year, partly in response to India's significant oil purchases from Russia. The current trade negotiations between the two countries are complex and have faced challenges. By gathering detailed weekly import data, India aims to provide timely and accurate information to support its position in these talks.

Market and Economic Impact

The new data collection requirement is expected to provide greater transparency in India's oil import landscape. It may also influence India's import patterns, potentially leading to a reduction in Russian oil imports to below 1 million barrels per day as India seeks to strike a balance in its trade relations with both Russia and the US. This development highlights the intricate dynamics of global energy trade and geopolitical relations.