India is set to import the largest quantity of crude oil from Venezuela in nearly six years, a strategic move aimed at compensating for supply shortages from the Middle East, which have been affected by the U.S.-Israeli war on Iran, according to Bloomberg reports.
According to data from Kepler, over 12 million barrels of Venezuelan oil are expected to reach India's west coast this month, marking the highest level since February 2020. This step reflects a strategic shift in India's oil policy.
Details of the Event
Sumit Ritolia, the chief research analyst at Kepler, suggested that April shipments were secured before the recent disruptions in Middle Eastern supplies, indicating a long-term shift in India's oil strategy rather than a mere circumstantial response.
India, which imports about 90% of its crude oil needs, is seeking alternatives after the war disrupted oil flow through the Strait of Hormuz, which typically accounts for around 40% of its oil imports. Venezuela, known for producing heavy sulfur-rich crudes, was one of India's main suppliers before U.S. sanctions curtailed trade.
Background & Context
Following the easing of U.S. sanctions on Venezuela after the arrest of President Nicolás Maduro, India began reconsidering its imports of Venezuelan oil. The oil tanker