India, one of the world's largest oil importers, traditionally sources most of its crude oil from several countries, including Saudi Arabia and the United States. However, in May, Venezuela surpassed both nations to become India's third-largest crude oil supplier.

This shift occurred as major Indian refiners, including Reliance Industries, increased their purchases of Venezuela's cheap and high-quality crude to navigate ongoing disruptions in the global oil markets.

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Venezuela: The Third Largest Supplier Of Crude To India

According to data from energy cargo tracker Kpler, Venezuela has supplied around 417,000 barrels per day (bpd) of crude oil to India so far this month, marking a significant increase from the 283,000 bpd in April. Oil supplies from Venezuela resumed after US forces ousted President Nicolas Maduro from power.

According to the data, India's total crude oil imports for May have risen 8 per cent compared to the previous month. However, imports remain 5 per cent lower than the 5.2 million bpd recorded in February. While the figure was recorded before the Iran war began, ongoing tensions in West Asia continue to disrupt shipping routes and restrict overall supplies.

Why Indian Refiners Have Increased Purchases Of Venezuelan Crude?

Speaking to The Economic Times, Nikhil Dubey, Lead Analyst-Refining at Kpler, said, "Indian buyers have historically shown strong interest in Venezuelan barrels due to their attractive economics and compatibility with complex refining systems."

While Venezuelan crude is highly suitable for Reliance Industries' advanced refinery in Gujarat, most other Indian refiners are only equipped to process limited quantities of this high-sulfur, heavy-grade oil.

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Hormuz Blockade Impacts Oil Imports From Iraq

Due to the near-blockage of the Strait of Hormuz, Iraq's oil shipments to India were completely halted in April. While India has received 51,000 bpd of Iraqi oil so far in May, this figure marks a sharp decline from the 969,000 bpd imported in February.

Saudi Was The Third-Largest Supplier

Saudi Arabia was India's third-largest oil supplier before the Iran war began on February 28. Oil supplies have nearly halved this month, dropping to 340,000 bpd from the 670,000 bpd recorded in April.

Who Is India's Largest Oil Supplier?

Despite India's growing oil purchases from Venezuela, Russia remains the largest supplier. India's imports of Russian crude surged from 1,570,000 barrels per day (bpd) in April to 1,983,000 bpd so far in May.

The United Arab Emirates (UAE) was the second-largest oil supplier to India in May.