India buys over 12 million barrels of Venezuelan crude due to Middle East war, according to Bloomberg
India will import the largest amount of oil from Venezuela in almost six years, helping the world's third-largest crude buyer replace Middle East supplies affected by the war in Iran. By Bloomberg Over 12 million barrels are heading to India's west coast this month from the South American producer, the largest volume since February 2020, according to Kpler data. Cargoes arriving in April were likely secured before recent Middle East disruptions, reflecting a longer-term strategic shift rather than just an immediate reaction, according to Sumit Ritolia, an analyst at the firm.
TL;DR
- India will import over 12 million barrels of Venezuelan crude this month, the largest quantity in nearly six years.
- This increased import aims to replace Middle East oil supplies affected by regional conflicts.
- The U.S. has eased sanctions on Venezuela, facilitating trade.
- Reliance Industries received the first Venezuelan crude shipment in a year and is now directly purchasing from PDVSA.
- Venezuelan heavy crudes are valuable for producing diesel and jet fuel, which are currently in high demand.