U.S. crude oil exports to India surged in February, reaching their highest levels in over two years, according to ship tracking data. This increase comes as Indian refiners seek alternative sources of oil, prompted by tightening U.S. sanctions on Russian producers and their associated tankers.
Ship tracking data from Kpler reveals that the U.S. exported approximately 357,000 barrels per day (bpd) of crude to India, the world’s third-largest oil importer, up from around 221,000 bpd during the same period last year.
This surge highlights the impact of multiple rounds of sanctions imposed by Washington on entities and ships involved in the transportation of oil from both Iran and Russia. These measures have disrupted trade flows, particularly with major oil-importing nations like India.
India’s energy purchases from the U.S. are expected to increase significantly, with forecasts suggesting they could reach as much as $25 billion in the near future, up from $15 billion in 2024.
Rohit Rathod, senior analyst at ship tracking firm Vortexa, explained that Indian refiners are actively diversifying their crude oil supplies, particularly seeking light-sweet barrels. “Sanctions on Russian vessels have pushed Indian buyers to explore alternative options,” Rathod noted.
Data shows that approximately 80% of the crude oil exported to India from the U.S. was light-sweet West Texas Intermediate-Midland crude. Major buyers included Indian Oil Corp, Reliance Industries, and Bharat Petroleum, while U.S. exporters included Occidental Petroleum, Equinor, Exxon Mobil, and Gunvor. These companies did not immediately respond to requests for comment.
In addition to the rise in exports to India, the U.S. also set a record in February with 656,000 bpd of crude shipped to South Korea. This increase is partly due to a 10% tariff on U.S. oil imposed by China, which has shifted crude flows. Meanwhile, U.S. exports to China dropped to 76,000 bpd, marking one of the lowest volumes in the past five years.
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