Ship tracking data reveals that India is set to receive over 250,000 barrels per day of U.S. crude next month, marking the highest intake in over a year. This surge in purchases comes amidst stricter enforcement of sanctions on Russian crude.
As the world’s third-largest oil importer and consumer, India seeks to diversify its oil sources amid escalating sanctions on Moscow, which pose a threat to Russian oil sales to India – historically the largest buyer of Russian seaborne crude.
According to ship tracking firm Kpler, approximately 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.
These vessels, predominantly headed to India’s west coast, have been chartered by companies including Reliance Industries, Vitol, Equinor, and Sinokor, as reported by financial firm LSEG.
India emerged as the top buyer of Russian oil last year, capitalizing on opportunities as other buyers withdrew amidst Western sanctions imposed on Moscow following its invasion of Ukraine in February 2022.
Recent actions by the U.S. to curtail Russia’s oil trade include sanctions on state-owned shipping firm Sovcomflot and 14 crude oil tankers involved in Russian oil transportation.
In response, Reliance Industries, operator of the world’s largest refining complex, has decided not to purchase Russian oil loaded on tankers operated by Sovcomflot, according to sources cited by Reuters.
Furthermore, more Indian refiners are contemplating avoiding Sovcomflot vessels, a move that could further reduce imports of Russian oil and limit Russia’s avenues for marketing its primary product, sources suggest.