India Turns to Nigeria for Oil Amid Rising US Trade Tensions
By NaijaEnquirer Staff
India, the world’s third-largest oil importer, is reducing its crude purchases from the United States and increasing imports from Nigeria and the Middle East amid rising trade tensions with Washington. The shift reflects the growing influence of geopolitics on global energy markets.
A Change in Supply Sources
In its latest tender, state-run Indian Oil Corporation (IOC) skipped US crude purchases, opting for two million barrels from Nigeria (Agbami and Usan grades via TotalEnergies) and one million barrels of Abu Dhabi Das grade from Shell. The Das crude is scheduled to arrive at Indian ports between late October and early November.
Just a week earlier, IOC had bought five million barrels of US West Texas Intermediate (WTI) crude, highlighting how geopolitics and market dynamics influence supply decisions.
Nigeria’s Oil Recovery
The Nigerian purchases coincide with rising production, with crude output exceeding 1.7 million barrels per day in July 2025, up from 1.54 million barrels in September 2024. Improved security in the Niger Delta has reduced oil theft, while increased rig activity is drawing renewed interest from international oil companies. The recovery strengthens Nigeria’s foreign exchange reserves and stabilizes the naira.
US-India Trade Tensions
The shift comes as Washington doubles tariffs on Indian imports, citing India’s continued purchase of discounted Russian crude. Former US President Donald Trump has also criticized India for indirectly supporting Moscow’s war effort in Ukraine, though India maintains its decisions are economically driven.
The Russian Factor
India has emerged as the largest buyer of Russian seaborne crude since 2022, helping stabilize global markets. Critics in the US accuse India of profiteering, while Indian officials argue that balancing purchases from Russia, the Middle East, and Africa ensures energy security and cost efficiency.
Price and Politics
The cost of US crude has risen compared to Nigerian and Middle Eastern grades. Energy ministers emphasize that economics, not politics, dictate sourcing decisions, with India prioritizing affordability and logistical efficiency.
A Shifting Energy Landscape
India’s pivot away from US crude highlights how political tensions influence energy markets and underscores Nigeria’s opportunity to expand its global oil footprint. Rising exports to Asia provide hope for stronger economic stability in Nigeria as global energy geopolitics evolve.
