India, the world’s third-largest crude importer, had dramatically increased purchases from Venezuela, Brazil, Angola, Nigeria and Russia starting in February when the Israel-U.S. war with Iran blocked Strait of Hormuz transit. Indian refineries raised total imports to 45.2% in April from 30% in March, according to OPEC data. By May, Venezuela had positioned itself as India’s fifth-largest crude supplier at approximately 266,000 barrels daily, representing 5.3% of total Indian crude imports. Russia maintained the top position, followed by the United Arab Emirates, Saudi Arabia and Brazil.
Iraq suspended exports to India in April, prompting New Delhi to secure a temporary waiver from Washington to purchase Iranian crude for global price stabilization. Projected May deliveries included 1.9 million barrels daily of Russian crude and approximately 41,000 barrels from Iraq. Venezuela anticipated rising to India’s fourth-largest supplier by May.
Despite July’s decline, logistical adjustments and alternative routing have reduced initial disruptions to global oil trade as the Iran conflict enters its sixth month. International crude prices retreated following U.S. President Donald Trump’s decision to suspend attacks on Iran to allow peace negotiations. Venezuelan crude, characterized as heavy and sulfur-rich, requires sophisticated refining capabilities available at India’s advanced facilities, offering cost advantages despite processing complexity.
This article was curated and published as part of our South American energy market coverage.
