Venezuelan crude imports surged 64% month-on-month to 358,000 barrels per day in August, making Venezuela India’s third-largest oil supplier.
Russian oil imports fell 27% to 2.06 million bpd, although Russia remained India’s biggest crude supplier, with flows expected to stabilise around 2-2.5 million bpd.
India is diversifying its oil basket, increasing purchases from the UAE and Angola while also sourcing crude from the US, Iraq, Nigeria and Brazil amid supply disruptions and geopolitical risks.
India’s Big Oil Shift: Venezuela Crude Imports Surge 64% As Russian Supplies Fall
India’s crude oil sourcing shifted sharply in August as Venezuelan imports hit their highest level since 2020, while Russian shipments fell to a four-month low amid tighter supplies and rising geopolitical pressure
Photo by Tom Fisk
Summary
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India significantly increased its purchases of Venezuelan crude in August, with imports reaching their highest level since 2020, as refiners stepped up buying following the easing of US sanctions on Venezuela, commodity analytics firm Moneycontrol reported citing Kpler data.
Venezuelan crude imports rose 64% month-on-month to 358,000 barrels per day (bpd) in August, making Venezuela India’s third-largest oil supplier and pushing Saudi Arabia down to fourth place.
Russia remained India’s biggest source of crude, although shipments declined sharply during the month. Russian oil arrivals fell 27% from July to 2.06 million bpd, a four-month low.
Russia Still India’s Top Supplier
Kpler expects Russian crude flows to decline by more than 700,000 bpd from July’s record 2.8 million bpd, citing refinery maintenance, tighter Russian export availability and stronger competition from Chinese buyers.
Despite the decline, Kpler said Russian supplies are likely to stabilise between 2 million and 2.5 million bpd in the near term, suggesting that the shift towards Venezuelan crude does not represent a fundamental break from Russian oil.
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The development comes as India faces growing pressure over its purchases of Russian crude. The US Senate has passed legislation proposing tariffs of up to 100% on imports from countries buying Russian oil, including India, China and Hungary.
UAE, Saudi Arabia Lose Ground
The UAE remained India’s second-largest crude supplier, with shipments rising 15% to 542,000 bpd in August from 470,000 bpd in July.
Venezuela overtook Saudi Arabia, whose supplies fell 18% month-on-month to 339,000 bpd. The decline followed a naval blockade imposed against the Gulf nation by Houthi militants in July, according to the report.
India is also expanding purchases from other producers as it seeks to diversify supplies amid disruptions in West Asia.
Imports from Angola surged to 198,000 bpd in August, compared with just 30,000 bpd in July. US crude shipments, however, declined 11% to 111,000 bpd from 125,000 bpd.
Venezuela Makes A Comeback
Venezuela was once a significant supplier to India, accounting for 6.7% of the country’s crude import basket in FY18. Between FY18 and FY20, it consistently ranked among India’s six largest suppliers, with a share of 5.9%-6.7%, according to Rubix Data Sciences.
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The revival in Venezuelan supplies follows a major shift in US policy. In March, the US Treasury issued a broad licence allowing Venezuela’s state-owned PDVSA to sell crude directly to US companies and international markets.
On August 31, the White House also announced details of a Venezuela oil agreement involving 100-year concessions for 17 fields with around 65 billion barrels of proven reserves.
The latest import data suggests India is using the changing global oil landscape to broaden its crude sourcing, while Russian oil continues to account for the largest share of its imports.