India is expected to receive approximately 10 to 12 million barrels of crude oil from Venezuela this month, marking the largest shipment in over six years, as indicated by Kpler, a commodity market analytics firm. This development comes amid ongoing conflicts in West Asia that have disrupted global oil and gas supply chains.<\/p>\n
This month will also be notable as it is the first time since May of the previous year that Venezuelan crude oil will arrive at Indian ports. Although this volume represents only a small portion of India’s total crude oil imports, it is anticipated to bolster the country’s efforts to diversify its crude oil sources.<\/p>\n
India relies heavily on imports for its energy needs, with over 88% of its oil requirements met through external sources and an average processing capacity exceeding 5 million barrels per day.<\/p>\n
More than 40% of India’s oil imports come from West Asia via the Strait of Hormuz, where shipping activities have been suspended since early March.<\/p>\n
It is important to note that the Venezuelan oil shipments destined for India were likely procured prior to the escalation of conflict in West Asia, highlighting the advantages of diversifying crude oil supply sources during global crises.<\/p>\n
India sources oil from over 41 nations, and this diversification has significantly decreased its reliance on West Asian crude. As a result, the country’s reserves of crude oil, petrol, and diesel have remained stable. \u201cThis development coincides with Indian refiners’ ongoing efforts to broaden their crude sourcing, particularly as uncertainties surrounding the Strait of Hormuz persist. However, the shipments arriving in April were probably arranged well before the recent disruptions, indicating a strategic shift rather than a mere reaction,\u201d noted Sumit Ritolia, manager of modeling and refining at Kpler.<\/p>\n
This trend underscores the increasing significance of proactive diversification in the global energy landscape. Securing alternative supplies ahead of time is increasingly regarded as a competitive edge, Ritolia added.<\/p>\n
Following the capture of Venezuela’s former president Nicol\u00e1s Maduro by the US in January, former President Trump announced intentions for Washington to take control of Venezuela’s oil sector. Subsequently, commodity traders Vitol and Trafigura received authorization to globally market Venezuelan oil, which had previously been subject to US sanctions.<\/p>\n
\u201cCrucially, Venezuelan heavy crude tends to produce higher quantities of distillates, particularly middle distillates such as diesel and jet fuel. This is particularly relevant in the current market environment, where demand for distillates remains high. Consequently, these imports not only diversify supply sources but also enhance India’s capacity to maintain robust distillate production,\u201d Ritolia stated.<\/p>\n
Previously, India, especially through private sector giant Reliance Industries Ltd (RIL), was a consistent purchaser of Venezuelan crude before US sanctions were imposed on Caracas in 2019, leading to a cessation of imports within months.<\/p>\n
In 2019, Venezuela was India’s fifth-largest oil supplier, delivering nearly 16 million tonnes, or approximately 117 million barrels, to Indian refiners. The bilateral trade between the two nations reached $6.40 billion during the 2019-20 fiscal year, with Indian imports, primarily crude oil, valued at $6.06 billion.<\/p>\n
In October 2023, the US relaxed sanctions on Venezuela’s oil sector, permitting unrestricted oil exports for six months. This change allowed RIL and other Indian refiners to resume imports from Venezuela. However, imports halted once again when the sanction waiver was not renewed by Washington following a breakdown in negotiations with Caracas regarding fair presidential elections.<\/p>\n
Several months later, RIL managed to restart Venezuelan oil imports after receiving a sanctions waiver from the US. Yet, in the summer of 2025, the company ceased imports again after the Trump administration threatened to impose higher tariffs on nations purchasing Venezuelan crude.<\/p>\n
Sukalp Sharma serves as a Deputy Associate Editor at The Indian Express, covering a wide array of topics including energy and aviation. With over 16 years of experience in journalism, he has reported on various subjects such as politics, economic policy, and trade. He also enjoys photography and travel.<\/p>\n","protected":false},"excerpt":{"rendered":"
India is expected to receive approximately 10 to 12 million barrels of crude oil from Venezuela this month, marking the largest shipment in over six years, as indicated by Kpler, a commodity market analytics firm. This development comes amid ongoing conflicts in West Asia that have disrupted global oil and gas supply chains. This month […]<\/p>\n","protected":false},"author":2,"featured_media":4700,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[702,1097,40],"tags":[],"class_list":["post-4701","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-business","category-in-commodities","category-india"],"yoast_head":"\n