Venezuela has emerged as India’s third-largest crude oil supplier in May 2026, overtaking both Saudi Arabia and the United States as Indian refiners increased purchases of Venezuelan crude amid shifting global energy dynamics.
According to Kpler data, Venezuela supplied around 417,000 barrels per day (bpd) of crude oil to India during May, compared with approximately 283,000 bpd in April. Notably, Venezuela had not supplied crude oil to India for nearly nine months before the recent recovery in shipments.
Only Russia and the United Arab Emirates supplied more crude oil to India during the month.
Indian Refiners Increase Venezuelan Oil Purchases
The sharp increase in Venezuelan imports comes after easing of certain US restrictions on Venezuelan oil exports earlier this year. Indian refiners, especially Reliance Industries Limited, increased purchases due to:
- Competitive pricing of Venezuelan crude
- Availability of heavy crude grades
- Compatibility with advanced refinery infrastructure
Reliance’s Jamnagar refinery complex in Gujarat is particularly suited for processing heavy and high-sulphur crude grades such as Venezuela’s Merey crude.
Other Indian refiners have also explored Venezuelan crude purchases in recent months as part of broader diversification strategies.
India’s Crude Sourcing Pattern Continues to Shift
India’s total crude oil imports rose around 8% month-on-month to approximately 4.9 million barrels per day in May. However, imports remained below February’s levels of 5.2 million bpd due to continuing geopolitical disruptions in West Asia.
At the same time:
- Imports from Saudi Arabia nearly halved to around 340,000 bpd
- Iraq supplies partially resumed after earlier disruptions
- Iranian cargoes were absent in May due to renewed shipping and geopolitical challenges
These changes reflect India’s increasing focus on diversifying crude sources to reduce dependence on any single region.
Global Energy Disruptions Reshape Oil Trade
The resurgence of Venezuelan crude imports also comes amid continuing instability linked to:
- Strait of Hormuz disruptions
- West Asian geopolitical tensions
- Shipping challenges affecting Gulf supplies
Indian refiners have increasingly turned toward:
- Russian crude
- Venezuelan heavy crude
- Spot market purchases
to secure stable and competitively priced supplies.
Industry trackers indicate that Venezuelan crude imports into India may continue rising if supply conditions and pricing remain favourable.
Why Venezuelan Crude Matters for India
Venezuelan crude offers several advantages for specific Indian refiners:
- Lower acquisition costs
- Availability of heavy crude grades
- Suitability for complex refinery configurations
- Opportunity to diversify away from disrupted Gulf routes
For refiners with sophisticated processing capabilities, heavy crude grades can improve refining economics when purchased at discounts to benchmark crude prices.
Conclusion
Venezuela becoming India’s third-largest crude supplier highlights the ongoing transformation in India’s energy sourcing strategy. As geopolitical uncertainties continue affecting global oil markets, Indian refiners are increasingly diversifying supply chains and securing competitively priced crude from alternative producers to maintain energy security and operational stability.
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