Venezuela Boosts Oil Exports to India with Supertankers

Venezuelan crude oil exports are now being transported on an unprecedented scale to India, utilizing Very Large Crude Carriers (VLCCs) that can carry up to 2 million barrels. This significant shift in trade dynamics follows a recent agreement between Caracas and Washington that has reopened the flow of Venezuelan oil. The deployment of VLCCs underscores a renewed confidence in the stability of Venezuela's crude exports, offering reduced freight costs and accelerated delivery times.

At least three VLCCs have been assigned loading slots in March for Indian destinations, with additional supertankers signaling Venezuela as their route. This development is strategically timed for Indian refiners, who were once a major market for Venezuelan crude before U.S. sanctions were imposed in 2019. With Washington's recent easing of restrictions, trade is rapidly rebounding, with major Indian companies exploring purchases directly from Venezuela or through trading houses.

India's refiners are particularly interested in Venezuela's discounted Merey heavy crude, seeking to diversify their sourcing and decrease reliance on Russian supplies. While global market conditions have narrowed margins, the use of larger vessels is expected to alleviate freight pressures. This move represents a substantial logistical enhancement compared to earlier exports, which predominantly used medium-sized tankers to U.S. refineries or Caribbean hubs. Venezuela's export volumes rebounded significantly in January, and these larger shipments are poised to absorb millions of barrels currently in storage.