US Crude Oil Exports Surge to India: Highest Levels in Two Years!

Very Large Crude Carriers (VLCCs) are busy at the Port of Corpus Christi, loading crude oil for global shipping. This image dates back to July 2022.

Last month, U.S. crude oil exports to India hit a two-year high. Indian refiners are turning to American oil as sanctions on Russian producers tighten.

In February, the U.S. exported around 357,000 barrels of crude oil per day to India. That’s a significant rise from 221,000 barrels per day the previous year. This change reflects shifts in the global oil market due to ongoing sanctions against Iran and Russia.

India aims to boost its energy imports from the U.S., potentially increasing from $15 billion last year to $25 billion soon.

“Indian refiners are exploring various sources for crude oil, especially looking for lighter varieties,” said Rohit Rathod, an analyst at Vortexa. The recent sanctions on Russian vessels have pushed Indian buyers to seek alternatives.

About 80% of this crude oil is light sweet West Texas Intermediate, a favored type among Indian refiners. Major buyers include Indian Oil Corp, Reliance Industries, and Bharat Petroleum Corp. On the U.S. side, companies like Occidental Petroleum, Equinor, and Exxon Mobil are leading the exports.

Interestingly, the U.S. also sent a record 656,000 barrels per day of crude to South Korea last month. However, exports to China decreased to just 76,000 barrels per day, marking one of the lowest volumes in five years.

The shifting dynamics in global oil trade show how sanctions and market demands can significantly reshape energy relationships.

Source: News.Az

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