Venezuela has emerged as India’s third-largest crude oil supplier in May, overtaking traditional energy giants Saudi Arabia and the United States. Indian refiners increased purchases of Venezuelan crude primarily because of its lower prices and suitability for complex refining systems. The development reflects India’s changing crude sourcing strategy amid ongoing disruptions in global oil markets and rising geopolitical tensions.
Indian Refiners Increase Venezuelan Crude Purchases
According to data from energy cargo tracker Kpler, Venezuela supplied nearly 4,17,000 barrels per day (bpd) of crude oil to India so far in May. This marks a sharp increase from approximately 2,83,000 bpd in April. Notably, Venezuela had not supplied crude oil to India during the previous nine months.
Reliance Industries and several other Indian refiners significantly boosted imports of Venezuelan heavy crude grades during the month. As a result, Venezuela moved ahead of both Saudi Arabia and the United States in India’s crude supplier rankings. Currently, only Russia and the United Arab Emirates export more crude oil to India than Venezuela.
Cheaper Venezuelan Oil Drives Demand
The primary reason behind the surge is competitive pricing. Venezuelan crude is currently cheaper than several global oil grades, making it an attractive option for Indian refiners facing elevated crude prices and volatile market conditions. In addition, Venezuelan heavy crude is well-suited for advanced refining complexes such as Reliance Industries’ Jamnagar refinery in Gujarat, one of the world’s largest refining hubs. Analysts believe Indian buyers continue to prefer Venezuelan barrels because of their attractive economics and compatibility with complex refinery configurations.
Global Supply Disruptions Reshape India’s Oil Strategy
India’s growing reliance on Venezuelan crude also comes amid major disruptions in global oil supply chains. The ongoing West Asia conflict, instability around the Strait of Hormuz, and fluctuating Middle East supplies have forced Indian refiners to diversify sourcing options. Moreover, crude shipments from Saudi Arabia have declined significantly in May. According to Kpler data, Saudi supplies to India nearly halved compared to April levels, further opening opportunities for alternative suppliers such as Venezuela.
Venezuela Re-Establishes Presence in Indian Market
The recent increase in exports signals Venezuela’s return to the Indian crude market after months of absence. Supplies resumed after the easing of certain US restrictions on Venezuelan oil exports earlier this year. Since then, Venezuelan oil exports have steadily recovered, with India emerging as one of the key buyers. As reported by indiatoday.in, industry experts believe the trend could continue if global geopolitical tensions persist and Venezuelan crude remains competitively priced. However, refining limitations at some Indian facilities may restrict large-scale expansion of imports beyond a certain level.
