India’s crude oil sourcing pattern has seen a dramatic reshuffle this month, with Venezuela climbing to the position of the country’s third-largest oil supplier. The South American nation has moved ahead of traditional heavyweights such as Saudi Arabia and the United States, as Indian refiners increased purchases of discounted heavy crude amid global supply disruptions.
According to data from energy cargo tracker Kpler, Venezuela supplied nearly 417,000 barrels per day (bpd) of crude to India during the first 20 days of May. The figure marks a sharp jump from 283,000 bpd recorded in April, while there had been no Venezuelan supplies to India in the preceding nine months.
The surge in imports has largely been driven by refiners such as Reliance Industries, which benefit from Venezuela’s lower-priced heavy crude grades. Analysts say the economics of Venezuelan oil remain attractive for Indian companies operating sophisticated refining systems.
“Indian buyers have historicallyshown strong interest in Venezuelanbarrels due to their attractive economics and compatibility with complexrefining systems,” said Nikhil Dubey,lead analyst-refining at Kpler.
Venezuelan crude is especially suitable for Reliance’s refining complex in Gujarat, which is designed to process high-sulphur heavy crude efficiently. While some state-run refiners can also handle these grades, their capacity remains comparatively limited.
The revival in supplies follows the easing of certain US restrictions on Venezuelan oil exports earlier this year. Exports from Venezuela have also surged globally, touching their highest level since 2018.
India’s Oil Import Strategy Changes After West Asia Disruptions
India’s total crude imports rose 8% month-on-month to 4.9 million barrels per day in May, according to Kpler data. However, imports are still lower than February levels, before geopolitical tensions and the Iran conflict disrupted shipping routes across West Asia.
The closure and disruption around the Strait of Hormuz forced Indian refiners to diversify sourcing options. Iranian crude shipments, which briefly resumed in April after a seven-year gap, have once again stalled this month due to the US naval blockade of Iranian ports.
Iraq, another major supplier, also experienced a steep fall in shipments to India. The country supplied only 51,000 bpd in May so far, compared with 969,000 bpd in February.
Saudi Arabia’s Share Shrinks Amid Pricing Concerns
Saudi Arabia, once India’s third-largest crude supplier before the Iran conflict escalated in February, has seen its exports to India nearly halve this month. Supplies dropped to 340,000 bpd from around 670,000 bpd in April.
“This happened “primarily due to the aggressive pricing of Saudi barrels,” said Dubey of Kpler.”
The pricing gap has made Venezuelan crude more competitive, especially at a time when refiners are looking to protect margins amid elevated global oil volatility.
Russia and the United Arab Emirates continue to remain India’s top two crude suppliers, but Venezuela’s rapid comeback highlights how global energy flows are shifting due to geopolitical tensions, sanctions adjustments, and changing market economics.