U.S. Crude Exports to India Surge Amid Russia Sanctions

U.S. crude oil exports to India surged to their highest level in over two years in February, reaching about 357,000 barrels per day (bpd), as Indian refiners sought alternative supplies following tighter U.S. sanctions on Russian producers and tankers. The increase in U.S. exports to India underscores how multiple rounds of sanctions imposed by Washington on ships and entities dealing with oil from Iran and Russia are disrupting trade with major importers of their oil.

The U.S. exported about 221,000 bpd of crude to India last year, but the jump in exports to India in February highlights the impact of geopolitical tensions and energy security concerns on India's crude oil import decisions. Indian refiners are actively seeking alternative sources of crude oil to diversify their supplies, especially light-sweet barrels, and sanctions on Russian vessels have pushed Indian buyers to look for alternative suppliers.

"Indian refiners are trying to diversify their crude supplies, especially light-sweet barrels," said Rohit Rathod, a senior analyst with ship tracking firm Vortexa. "Sanctions on Russian vessels that came in recently only pushed Indian buyers to look elsewhere," he added.

About 80% of the crude exported to India was light sweet West Texas Intermediate-Midland crude, according to the data. Top buyers included Indian Oil Corp, Reliance Industries and Bharat Petroleum Corp, while top sellers in the U.S. included oil producer Occidental Petroleum, majors Equinor and Exxon Mobil and trading house Gunvor.

The U.S. also exported a record 656,000 bpd of crude to South Korea in February, as a 10% tariff on U.S. oil by China rerouted flows. Exports to China from the United States eased to 76,000 barrels per day, among the lowest volumes in the last five years.

The surge in U.S. crude oil exports to India comes as India's energy purchases from the U.S. could go up to $25 billion in the near future from $15 billion last year, according to Indian officials. The increase in U.S. exports to India highlights the potential for further growth in energy trade between the two countries, as well as the impact of geopolitical tensions and energy security concerns on India's crude oil import decisions.

Sources:
- Reuters. (2023). U.S. crude oil exports to India surge to highest in over two years. Retrieved from
- Kpler. (2023). India's crude oil imports from the U.S. surge in February. Retrieved from