U.S. crude oil exports to India reached their highest level in over two years in February, following increased sanctions on Russian producers. Data from ship tracking firm Kpler revealed that the U.S. exported approximately 357,000 barrels per day (bpd) to India, compared to around 221,000 bpd in February of the previous year. This surge reflects India’s need for alternative crude oil sources as the sanctions imposed by the U.S. have disrupted traditional trade flows.
The sanctions targeting Iranian and Russian oil producers have significantly impacted India’s oil imports. Recently, Indian officials projected that their energy purchases from the U.S. could rise to $25 billion in the near future, up from $15 billion last year. According to Rohit Rathod, a senior analyst at Vortexa, Indian refiners are actively seeking to diversify their sources, particularly for light-sweet crude oil, which is favored for its quality and versatility in refining.
Data shows that approximately 80% of the crude exported to India from the U.S. was light sweet West Texas Intermediate-Midland crude. Major Indian importers included Indian Oil Corp, Reliance Industries, and Bharat Petroleum Corp. Meanwhile, significant exporters from the U.S. were Occidental Petroleum, Equinor, Exxon Mobil, and trading house Gunvor, although these companies did not respond to requests for comments.
In addition to exports to India, the U.S. also reported sending a record 656,000 bpd of crude to South Korea during the same month. Conversely, exports to China fell to 76,000 bpd, marking one of the lowest volumes in five years due to the existing 10% tariff on U.S. oil by China.