Surge in South American Imports Reshapes India’s Oil Mix
Venezuela has emerged as India’s third-largest crude oil supplier for the month of May 2026, surpassing traditional Middle Eastern suppliers like Saudi Arabia. According to ship-tracking and customs data, Indian refiners imported approximately 417,000 barrels per day (bpd) of Venezuelan crude, representing a significant increase from the 283,000 bpd imported in April 2026, and placing it behind only Russia and the UAE.
The import surge was driven by geopolitical tensions in the Middle East, which led to shipping disruptions in the Strait of Hormuz and prompted Indian refiners to seek alternative crude sources. Venezuelan heavy, sour crude has been priced competitively compared to regional alternatives, offering attractive margins for complex refineries in India, such as Reliance Industries’ Jamnagar refining complex, which are optimized to process heavy crude grades.
US Policy and Long-Term Supply Security
The recovery in trade flows was made possible by the easing of specific US economic sanctions on Venezuela’s state oil company, PDVSA, allowing for direct financial settlements. Indian refiners have locked in multi-month supply contracts to secure baseload volumes. However, energy analysts note that maintaining this supply level depends on the political stability of Venezuela and the continuation of US sanction waivers.
