Indian refiners buy more U.S. crude as Russia sanctions tighten

India is the world’s third largest oil importer and consumer. (representative)

Houston:

Ship tracking data shows more than 250,000 barrels per day (bpd) of U.S. crude will arrive in India next month, the highest level in more than a year, amid tighter sanctions on Russian crude.

India, the world’s third-largest oil importer and consumer, is seeking to diversify its oil supplies as new U.S. sanctions on Moscow threaten to dent Russian oil sales to India, the top buyer of Russian seaborne crude.

About 7.6 million barrels of oil, or 256,000 barrels per day, are shipped to India on three large crude carriers and three Suezmax tankers, according to ship tracking firm Kpler.

The ships are mainly bound for India’s west coast and are chartered by companies including Reliance Industries, Vitol, Equinor and Sinokor, according to London Stock Exchange Group (LSEG) data.

India became the top buyer of Russian oil last year after other groups pulled back from purchases after the West imposed sanctions on Moscow over its invasion of Ukraine in February 2022.

Last month, the United States stepped up efforts to reduce Russian oil trade, imposing sanctions on state-owned shipping company Sovcomflot and 14 crude oil tankers involved in transporting Russian oil.

Reliance, the world’s largest refinery operator, will not buy Russian oil loaded on tankers operated by Sovcomflot, sources told Reuters last week.

More Indian refineries plan to avoid Rosneft ships, sources said, which could affect imports of Russian oil and lead to fewer sales channels for Russia’s flagship product.

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