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India steps up oil exports to U.S as West boycotts Russia; Turns emerging refinery hub I Report

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India steps up oil exports to U.S as West boycotts Russia; Turns emerging refinery hub I Report


India has stepped up vacuum gas oil (VGO) exports to the United States this year. According to the reuters report it is an unusual trade flow for the oil product as the west seeks alternatives to replace Russian supplies .


Global oil traders Vitol and trafigura have brought pne cargo of VGO .

Reuters these were brought from Indian refiner Nayara energy in tenders at premium ranging from $ 10 TO $ 15 a barrel to Dubai crude quotes .


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The cargoes to load from India Vadinar port in Dec are likely to head US or Europe . Reuters said that prior to this Aframax tanker shanghai dawn loaded 80,000 tonnes of VGO from reliance industries LTD .


Jamnagar port arriving in US between Oct -Nov . Nayar energy reliance and Vitol and trafigura are yet to confirm the report . India VGO exports to the United States climbed in 2022 compared with last year .


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As per Vortexa data only one cargo was loaded from India to US in may 2021. VGO is used as refinery feedstock to produce other products like Gasoline and Diesel .


Russia used to be a key VGO supplier to US refiners before the Ukraine war broke out . US and Canada banned Russian oil imports over Moscow invasion of Ukraine .


Sanctions from the European Union on Russian crude imports will take effect on Dec 5 meanwhile India the world third-largest oil importers has been ramping up Russian crude imports and increasing oil product exports to the west for higher margins . 


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