U.S. oil exports to India reach two-year high

U.S. crude oil exports to India reached their highest level in over two years, with shipments averaging 357,000 barrels per day (bpd) in February, according to ship tracking data from Kpler.

This marked a significant increase from approximately 221,000 bpd in the same period last year.

The rise in exports underscores the impact of tighter U.S. sanctions on Russian oil producers and tankers, prompting Indian refiners to seek alternative supplies. The sanctions, which have targeted vessels and entities involved in Russian and Iranian oil trade since October, are disrupting the global supply chain for major oil importers.

India has expressed intentions to increase its energy purchases from the U.S., potentially rising to $25 billion in the near future, up from $15 billion last year.

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

In February, the U.S. also set a record for crude exports to South Korea, reaching 656,000 bpd, as a 10% tariff imposed by China on U.S. oil rerouted flows. Meanwhile, exports to China dropped to just 76,000 bpd, the lowest in the past five years.