Indian Refiners Boost US Crude Purchases Amidst Russian Sanctions Tightening

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Ship tracking data reveals that India is set to receive more than 250,000 barrels per day of U.S. crude next month, marking the highest volume in over a year. This uptick in purchases comes amidst intensified enforcement of sanctions targeting Russian crude oil.

India, known as the world’s third-largest oil importer and consumer, is actively seeking to diversify its oil supply sources as fresh U.S. sanctions on Moscow threaten to impact Russian oil sales to India, the largest buyer of Russian seaborne crude.

According to ship tracking firm Kpler, about 7.6 million barrels of oil, equivalent to 256,000 barrels per day (bpd), are en route to India on three very large crude carriers and three Suezmax vessels.

India emerged as the top buyer of Russian oil last year, particularly after other entities scaled back purchases following Western sanctions on Moscow in response to its invasion of Ukraine in February 2022.

In a further move to curtail Russia’s oil trade, the U.S. recently tightened its efforts by imposing sanctions on state-owned shipping firm Sovcomflot and 14 crude oil tankers involved in Russian oil transportation. As a result, sources informed Reuters last week that India’s Reliance, operator of the world’s largest refining complex, will refrain from purchasing Russian oil loaded on tankers operated by Sovcomflot.