India may increase its energy purchases from the US due to its increased oil needs: Puri

About 85% of India's energy demands are met by imports, therefore the country has been looking for more affordable oil supplies, especially since the US recently imposed further restrictions on Russian oil firms and ships.

Delhi, New Delhi: Union Minister for Petroleum and Natural Gas Hardeep Singh Puri stated on Tuesday that India would welcome more oil and gas entering the market, citing the United States under President Donald Trump as a likely source of extra fuel supplies.

The minister told reporters in New Delhi that he did not "disagree" that an excess of oil may lower costs.

As I have mentioned numerous times, it is evident that the market is receiving an increasing amount of energy. Oil is abundant if you look at the global energy scenario. I already informed you that a former US president had stated that they would increase market energy regardless of the outcome (of presidential elections) following my return from Gastech 2024 in Houston. At the time, I believed that America was already producing about 13 million barrels per day (mb/d). "They will add at least 1.4 to 1.5 mb/d to the market," he stated.

during the Trump administration. Trump reaffirmed his campaign trail mantra, "Drill, baby, drill," which stated that his government would increase oil and gas production, as one of the first pronouncements he made after taking office.

In an effort to increase energy output, Trump has also declared his intention to declare a "national energy emergency".

About 85% of India's energy needs are met by imports, therefore the country has been looking for more affordable oil supplies, especially since the US recently imposed further restrictions on Russian oil firms and ships.

Due to its ability to circumvent Western sanctions by offering the commodity at reduced prices, Russia has become India's largest supplier of oil over the last three years. roughly 38% of India's entire imports are Russian crude, despite the fact that discounts have drastically decreased from around $30 per barrel in 2022 to roughly $2.5–4 per barrel now.

With 4.3% of crude imports so far this fiscal year, the US is India's fifth-largest oil supplier.

Energy-related strategy
"I would say that there will be more American energy available in the Indian market. "The answer is yes if you say that there is more potential for energy purchases between India and the US,"

It indicates the amount of oil that has been on the market. As I mentioned earlier, I see the price of crude oil responding to that availability. Second, the inauguration of (Trump) just happened. A few choices have been made. Allow them to enter. A few of these choices had been expected.

Puri emphasized that India now sources gas and crude oil from 39 nations instead of just 27.

Despite a slowdown in the growth of the world's oil consumption, India remains a significant demand engine, with annual demand breaking records.

According to data from the Petroleum Planning and Analysis Cell, India's demand for petroleum products is still strong, with consumption expected to reach a record 252.9 million tonnes for the upcoming fiscal year (FY26). Compared to the 241.8 million tonnes anticipated for this fiscal year, India's petroleum product could reach a record 252.9 million tonnes in FY26, a 4.65% increase.

Regarding natural gas supply, Puri stated that there is a large amount of gas accessible worldwide and that industry participants are open to entering into long-term agreements. He went on to say that additional capacities in the US and Qatar are anticipated to bring more gas online in 2026–2027.