India’s import of US crude oil in February rose to its highest level in over two years after the Indian refiners sought alternative supplies for crude oil post the US latest sanctions on Russian producers.
An analysis of data provided by Kpler shows that the US exported about 357,000 barrels per day (bpd) of crude to India last month against exports of 221,000 bpd last year, as per Reuters.
The US is among the top five suppliers of crude oil to the country. Analysts and industry players expect the imports of US crude oil and gas to increase going ahead as the two countries seek to strengthen energy trade and ties post the meeting of Prime Minister Narendra Modi with the US President Donald Trump last month.
The country has said that its energy purchases from the US could go up to $25 billion in the near future from $15 billion last year.
“Indian refiners are trying to diversify their crude supplies, especially light-sweet barrels. Sanctions on Russian vessels that came in recently only pushed Indian buyers to look elsewhere,” Reuters reported quoting Rohit Rathod, a senior analyst with ship tracking firm Vortexa.
As per the data, about 80% of the crude exported to India was light sweet West Texas Intermediate-Midland crude.
Top buyers of US crude oil included state-owned Indian Oil Corp, Reliance Industries, and Bharat Petroleum Corp, Reuters reported, while top sellers in the US included oil producer Occidental Petroleum, majors Equino, and Exxon Mobil, and trading house Gunvor.
As per the data, the US also exported a record 656,000 bpd of crude to South Korea in February, as a 10% tariff on US 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.