Indian Oil Corporation Limited (IOCL) is contemplating the resumption of Venezuelan oil purchases should the United States continue its relaxation of sanctions against the OPEC-producer, stated company’s Chairman Shrikant Madhav Vaidya. According to LSEG trade flow, IOCL is slated to receive a cargo of Venezuelan oil in April. “We will evaluate the possibility of procuring Venezuelan oil as long as the current relief measures persist and if it aligns with our commercial interests,” remarked Vaidya.
United States eased sanctions on Venezuela’s oil industry, with a condition that the government would allow international observers in its presidential election, a promise, which is yet to be fulfilled. Data from LSEG indicates that IOCL and Reliance Industries Ltd aren’t receiving Venezuelan oil in April.
In the event that the license, granted in October 2023 to ease sanctions, is not extended next month, the state oil company PDVSA may resort to utilizing intermediaries to sell its oil to buyers such as China, possibly at discounted rates. As reported by ETEnergyworld.com, India had halted the import of Venezuelan oil in 2020 following U.S. sanctions, only resuming purchases last year when Washington temporarily eased restrictions on the South American nation’s oil sector. As the world’s third-largest oil importer and consumer, India sources over 80% of its oil needs from overseas, aiming to reduce its crude import expenditures while seeking to expand its refining capacity.
