The United States is the primary beneficiary of sanctions on Russian and Venezuelan oil. American oil exports have set five new monthly records since Western countries began imposing sanctions on Russia in 2022. And with trade restrictions on Venezuela expected to be renewed in April, American barrels will replace the crude purchased by India, one of the largest buyers of illicit oil.

This shift underscores how sanctions have helped American crude oil capture market share worldwide. While American oil has long been the most flexible barrel in the world, the disruption of energy flows after Russia’s invasion of Ukraine has created new appeal. Shipments to Europe and Asia have surged, making the United States one of the largest global exporters. The production cuts by OPEC and its allies have also helped American producers gain more ground in foreign markets.

India, the third-largest crude importer and Moscow’s second buyer after China is the latest market to experience an influx of American oil. American shipments to India are expected to increase in March and reach their highest level in nearly a year. Meanwhile, since last year’s peak, Russian oil imports have dropped by about 800,000 barrels per day. Russian shipments could further decrease with Indian oil refiners no longer accepting cargoes from tankers owned by the state-owned company Sovcomflot PJSC, which the United States recently sanctioned.
Although American supplies cannot fully replace Russian crude due to differences in oil quality and travel times, this will further boost American production. Indian refiners have also stopped purchases from Venezuela following the expiration of a waiver from US sanctions. Even before the latest series of trade restrictions, the United States had rapidly become a key supplier to Asia, where American imports reached a yearly record last year, according to the EIA.

In Europe, American shipments reached a record level in March, with European countries seeking non-Russian sources of supply. American imports to France surged by nearly 40% between 2021 and 2023, while those to Spain increased by 134%