Why might India start importing oil from Venezuela again?

India may begin importing oil from Venezuela as U.S. sanctions on the South American nation ease, potentially rerouting barrels previously sent to China.

What is the significance of the U.S. tariff removal for India's oil imports?

The U.S. has withdrawn a 25% punitive tariff on India's imports, which was conditional on India stopping its purchases of Russian oil, encouraging diversification of energy sources.

Which Indian companies are equipped to refine Venezuelan crude?

Complex refineries like Reliance Industries Ltd's Jamnagar refinery and Indian Oil Corp.'s Panipat refinery are capable of refining the dense crude oil pumped by Venezuela.

Home / Business and Economy / India eyes Venezuela oil as sanctions ease

India eyes Venezuela oil as sanctions ease

12 Feb

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Summary

India may receive Venezuelan crude diverted from China.
US has lifted punitive tariffs on India's imports.
Reliance Industries booked cargoes for April arrival.

India eyes Venezuela oil as sanctions ease

New Delhi is preparing to potentially secure substantial crude oil supplies from Venezuela as U.S. sanctions on the South American country are easing. Venezuela, which had been sending approximately 400,000 barrels of crude oil daily to China, is now anticipated to divert a portion of these shipments to India and the United States. This shift is significant for India, the world's third-largest oil buyer, which previously imported 400,000 barrels per day from Venezuela before sanctions were imposed in 2020.

Indian public sector refiners, along with sophisticated facilities such as Reliance Industries Ltd's Jamnagar refinery and Indian Oil Corp.'s Panipat refinery, possess the capability to process Venezuela's dense crude. Reliance has already committed to receiving Venezuelan cargoes, with the first expected to arrive in India by April. This move aligns with India's strategy to maintain diverse crude oil sources amidst global geopolitical shifts and its own increasing energy demands. India imports nearly 90% of its oil, with consumption projected to grow significantly in the coming years.