India is set to buy the highest quantity of Venezuelan crude oil in nearly six years as it looks for alternatives to replace disrupted supplies from the Middle
East due to the ongoing Iran war. More than 12 million barrels of Venezuelan oil are scheduled to arrive at India’s west coast this month — the highest volume since February 2020, according to shipping data from Kpler. This marks a significant shift. India, which imports around 90% of its crude needs, has been actively searching for new sources after supplies through the Strait of Hormuz were badly hit by the conflict. Why Venezuela Matters Now Venezuelan crude is heavy and sulfur-rich, similar to some Middle East grades. It yields a higher proportion of middle distillates like diesel and jet fuel, which are currently in tight supply globally. This makes it particularly useful for Indian refiners right now. The first cargo of the month — the Suezmax tanker Ottoman Sincerity carrying nearly 1 million barrels of Boscan crude — has already reached Reliance Industries’ Sikka port. This is the first Venezuelan oil shipment to India in over a year. Reliance has also loaded another cargo directly from Venezuela’s state oil company PDVSA on the tanker Helios this week. The company holds a US license that allows it to buy directly from Venezuela. Strategic Move Analysts say these April shipments were likely arranged even before the latest disruptions in the Middle East, showing that India is making a longer-term effort to diversify its oil sources rather than just reacting to the current crisis. Before US sanctions tightened, India used to be one of the biggest buyers of Venezuelan oil. Trade had almost stopped for years, but eased somewhat after political changes in Venezuela earlier this year. For now, most of the incoming crude is Venezuela’s flagship Merey blend. Indian refiners, especially Reliance, are expected to process these heavy barrels to produce much-needed diesel and jet fuel. This renewed buying from Venezuela highlights how the Iran war is forcing India to look far and wide to keep its refineries running smoothly and prevent fuel shortages at home.
