U.S. Crude Oil Exports to India Reach Highest in Over Two Years Due to Russia Sanctions

U.S. crude oil exports to India surged in February, reaching their highest level in more than two years, as Indian refiners sought alternative supplies due to tighter sanctions on Russian oil producers and tankers.

Ship tracking data from Kpler shows that the U.S. exported approximately 357,000 barrels per day (bpd) of crude to India last month, a sharp increase from 221,000 bpd in the same period last year. India, the world’s third-largest oil importer, has been adjusting its crude sourcing strategy after Washington imposed multiple rounds of sanctions on Russian and Iranian oil shipments since October.

With restrictions on Russian vessels limiting India’s access to discounted crude, Indian refiners have turned to U.S. oil, particularly light-sweet West Texas Intermediate (WTI) Midland crude, which made up about 80% of the exports. This type of oil is favored by refiners for its low sulfur content and efficient processing.

Indian Oil Corp, Reliance Industries, and Bharat Petroleum Corp were among the top buyers of U.S. crude, while major sellers included Occidental Petroleum, ExxonMobil, Equinor, and trading firm Gunvor.

India has also signaled a long-term increase in U.S. energy imports, with officials stating that purchases could rise to $25 billion in the near future, compared to $15 billion last year.

Meanwhile, U.S. crude exports to South Korea reached a record 656,000 bpd in February, as China's 10% tariff on American oil redirected trade flows. At the same time, U.S. shipments to China fell to just 76,000 bpd, marking one of the lowest levels in five years.

Also Read: US Sanctions Cause Oil Price Surge as Iran and Russia Struggle to Sell Crude