India’s Oil Trade Shifts from Russia to U.S. Amid Sanctions Impact

India’s crude oil import landscape is shifting as sanctions cut Russian oil exports to the country by nearly 25% in February, while U.S. shipments have almost doubled. This comes amid India’s plan to increase American energy purchases by two-thirds to $25 billion, signaling a significant trade shift.

According to energy cargo tracker Vortexa, an average of 1.07 million barrels per day (mbd) of Russian crude was loaded for India-bound tankers in the first 20 days of February, down from 1.4 mbd in January. In contrast, U.S. crude loadings surged to 0.2 mbd from 0.11 mbd.

"We broadly see a decline in exports to India from Russia with other suppliers picking up exports to offset this," said Rohit Rathod, analyst at Vortexa. "Indian imports from the US are likely rising to compensate for Russian light sweet ESPO Blend cargoes, loadings of which have been impacted by the recent US sanctions."

Meanwhile, Saudi Arabia and Iraq have increased shipments to India, with Saudi crude rising to 0.91 mbd and Iraq’s loadings reaching 1.08 mbd.

As refiners navigate trade restrictions, Russian and U.S. cargoes loaded in February will be reflected in India’s March imports. With sanctions tightening post-March 12, Indian refiners are diversifying supply sources, reinforcing their dependence on Middle Eastern and American crude.