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Venezuela Becomes India’s Third‑Largest Crude Supplier

Price discounts and a technical fit with complex refineries have pushed heavy Venezuelan oil into India’s import mix and altered trade flows.

Overview

  • Venezuela supplied about 417,000 barrels per day to India in May, rising from roughly 283,000 bpd in April and making it the country’s third‑largest supplier, according to Kpler.
  • India’s total crude imports climbed to about 4.9 million bpd in May but remained below the roughly 5.2 million bpd recorded before the Iran conflict.
  • Refinery economics and grade compatibility drove the shift because Venezuela’s cheaper, heavy high‑sulphur crudes suit advanced complexes such as Reliance’s Jamnagar better than most state refineries can handle.
  • Saudi and Iraqi shipments to India fell sharply in May, and Iranian cargoes that briefly resumed in April have stalled again after reports of a US naval blockade around Iranian ports.
  • The change could ease margin pressure for advanced refiners, affect domestic fuel costs and inflation, and prompt India to keep diversifying suppliers if West Asia disruptions persist.