(Bloomberg) — New York State is buying unusually large amounts of gasoline and diesel from India. India is the largest destination for Russia’s licensed oil exports.
About 89,000 barrels per day of Indian gasoline and diesel will arrive in New York this month for the first time in nearly four years. That accounted for more than 40% of the region’s total imports in January, according to Kpler data compiled by Bloomberg. This is a leap from last year’s average of 5%.
These imports are a vital replacement for Europe’s fuel shipments, which have slowed in recent months, and are likely to deplete further when new Russian sanctions begin on February 5.
Meanwhile, India is poised to buy more heavily discounted Russian crude rejected by the G7, turn it into valuable fuel and sell it to places affected by sanctions.
India’s imports of Russian oil hit a record high this month, reaching 1.39 million barrels per day in January, according to Kpler. The figures show that Russia has been India’s top supplier since June.
This growing trading pattern highlights the limits of sanctions and their unintended consequences for consumers. A growing reliance on imports from as far away as India puts the US East Coast at increased risk of supply shortages. Freight from India often takes him over a month to reach New York, which is two to three times more than he does for European freight.
East Coast diesel and kerosene stockpiles have fallen to record lows for this time of year, gasoline supplies have fallen to their lowest levels in a decade, and the region has been hit by blackouts and skyrocketing prices. It’s getting easier.
(Updates India volume in fifth paragraph.)
©2023 Bloomberg LP