Indian state-owned oil company Bharat Petroleum Corporation Limited (BPCL) has awarded a five-month tender for the procurement of ten million barrels (mbbl) of US oil to Glencore, a European trading company, reported Reuters, citing sources.
This deal is a significant step towards bolstering India's energy ties with the US and comes amid ongoing bilateral trade negotiations.
The contract stipulates that Glencore will supply 2mbbl of WTI Midland crude to BPCL every month from November to March, effectively doubling the quantity BPCL imported under its previous tender.
This increase in US oil imports is expected to help India reduce its trade surplus with the US, which stood at $45.7bn last year (Rs3.99trn).
The move to secure more US oil aligns with the heightened trade tensions between India and the US following the imposition of a 25% tariff on Indian goods by US President Donald Trump on 7 August, with further threats of tariffs over India's Russian oil purchases.
However, during Prime Minister Narendra Modi's visit to Washington in February, India committed to augmenting US energy purchases from $10bn to $25bn, with the two countries aiming for $500bn in bilateral trade by 2030.
Indian refiners are already sourcing increased amounts of US oil from spot markets, taking advantage of favourable arbitrage economics for Atlantic Basin grades in Asia.
Plans are also in place to boost imports of cooking gas from the US, starting from 2026, with the Indian Government considering the removal of import taxes on propane and liquefied natural gas from the US.
In a related development in February, Petrobras, the Brazilian oil giant, signed a strategic term contract with BPCL for the supply of Brazilian crude oil grades.
Petrobras also established cooperation agreements with ONGC Videsh and Oil India to explore oil and gas opportunities, highlighting its commitment to expanding its global energy market presence. These agreements were finalised during India Energy Week, emphasising the importance of international partnerships in the energy sector.
