Indian refiners are set to receive over 250,000 barrels per day of U.S. crude next month, marking the highest volume in more than a year, as per ship tracking data. The surge in U.S. crude imports by India comes amidst stricter enforcement of sanctions targeting Russian oil sales. India, a significant oil importer and consumer globally, is actively seeking to diversify its oil sources in response to escalating sanctions on Russian crude, which pose a threat to Russian oil shipments to India, a major buyer of Russian seaborne crude. Approximately 7.6 million barrels of oil, equivalent to 256,000 barrels per day, are en route to India aboard three very large crude carriers and three Suezmax vessels chartered by companies like Reliance Industries, Vitol, Equinor, and Sinokor. These shipments, primarily bound for India’s west coast, reflect a strategic shift in oil procurement amid evolving geopolitical dynamics impacting global oil markets. Following recent U.S. sanctions targeting Russia’s oil trade, Indian refiners, including Reliance, have opted to avoid purchasing Russian oil carried on vessels operated by Sovcomflot. This decision is part of a broader trend among Indian refiners to distance themselves from Sovcomflot vessels, potentially reducing imports of Russian oil and limiting Russia’s access to key markets for its primary commodity.
Indian Refiners Increase US Crude Imports Amid Tightening Sanctions on Russian Oil