Reliance has chartered large VLCCs to import Venezuelan crude, reducing freight costs and speeding deliveries from March.
Indian refiners are increasing Venezuelan purchases as Russian imports decline and supply diversification picks up.
The move comes amid US trade uncertainty after the Supreme Court struck down Trump’s tariff policy.
India Turns to Venezuela; Reliance Books VLCCs as Russian Oil Imports Ease
The move expected to cut freight costs, ease tanker shortage and diversify crude sourcing amid US trade uncertainty
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Indian Refiner Reliance Industries has booked very large oil tankers, known as VLCCs, to transport crude oil from Venezuela, Reuters reported. This marks the first time such massive vessels are being used under a new supply arrangement after recent US actions involving capture of Venezuelan President Nicolas Maduro. These ships can carry 2 million barrel oil than the smaller tankers that were previously being used.
The move is expected to lower transportation costs because bigger ships can carry more oil in a single trip. It will also help ease the shortage of smaller tankers that were handling most of Venezuela’s exports in recent months. Deliveries using these large vessels are expected to begin in March and could make the supply process faster and more efficient.
According to the report, at least three VLCCs — Nissos Kea, Nissos Kythnos and Arzanah — have been booked by global traders Vitol and Trafigura for March loading.
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Since January, most Venezuelan crude had been shipped in medium-sized tankers like Panamax and Aframax vessels, which carry between 450,000 and 700,000 barrels. Some shipments were also transported in Suezmax tankers, which can carry up to 1 million barrels, to storage terminals in the Caribbean before being sent onward to the United States and Europe.
US oil company Chevron has also sold its first cargo of Venezuelan crude to Reliance since December 2023. In addition, Reliance bought a 2-million-barrel shipment from Vitol for March loading and is reportedly seeking to purchase oil directly from Venezuela’s state-run company PDVSA.
Other Indian refiners such as Indian Oil Corp, Bharat Petroleum and HMEL have also bought Venezuelan heavy crude from Trafigura. India is looking to diversify its oil sources as it reduces dependence on Russian crude.
Meanwhile, after the US Supreme Court struck down US President Donald Trump’s “Liberation Day” tariff, analysts say India may feel some relief regarding its Russian oil imports.
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Under a temporary trade deal, Trump had claimed India would stop buying Russian oil and shift to US and Venezuelan supplies. In December, India’s imports from Russia had already dropped to a three-year low.
