India shifts crude sourcing to Venezuela

India’s crude buying pattern changed in May after Indian refiners raised purchases from Venezuela while Iranian cargoes stopped arriving, according to Indian media reports citing shipping and trade data. The adjustment came as disruption around the Strait of Hormuz forced importers to rework supply chains and refinery runs. Venezuela moved ahead of Saudi Arabia and the United States to become India’s third-largest crude supplier this month, trailing Russia and the United Arab Emirates, the reports said. Indian outlets said the shift helped keep domestic fuel supplies stable even as shipments linked to Iran fell away. ### Why did India start buying more oil from Venezuela? May trade data cited by the Times of India and Economic Times showed Indian refiners increased purchases of Venezuelan crude because it was cheaper and suited complex refineries that can process heavier grades. Kpler data cited by those reports put Venezuelan supplies to India at about 417,000 barrels per day in May, up from 283,000 bpd in April. Reliance Industries was named as one of the refiners increasing purchases. (timesofindia.indiatimes.com) Venezuelan crude offered refiners an alternative source outside the immediate Gulf disruption zone. Zee News reported India had maintained supply stability through diversification, alternative sourcing and refinery adjustments rather than relying on a single route or supplier. That meant the change was not only about buying different barrels, but also about changing crude mixes and plant operations to keep fuel output steady. (timesofindia.indiatimes.com) ### What happened to Iranian supplies? No Iranian cargoes arrived in India in May, the Times of India reported, attributing the halt to a U.S. naval blockade of Iranian ports. That left refiners searching for replacement barrels at a time when the Strait of Hormuz, one of the world’s most important oil chokepoints, was already under strain from the wider West Asia conflict. (zeenews.india.com) April reporting from the same outlet said India was already set to receive more than 12 million barrels of Venezuelan crude on its western coast, the highest monthly volume in six years. That earlier increase helps explain why Venezuela was positioned to climb the supplier rankings once Iranian flows stopped in May. (timesofindia.indiatimes.com) ### Why does Venezuelan crude fit Indian refineries? Indian refiners have long been able to process a wide range of heavier and discounted crude grades, especially at more complex plants. The Times of India and Business Today reports said Venezuelan heavy crude was attractive because of its pricing and compatibility with those refineries. That gave buyers room to substitute away from disrupted Middle Eastern supplies without an immediate loss of processing flexibility. (timesofindia.indiatimes.com) Russia remained India’s biggest crude supplier in May, while the United Arab Emirates ranked second, according to the same reports. Venezuela’s rise to third place meant Saudi Arabia and the United States were pushed lower in the monthly order of suppliers. (timesofindia.indiatimes.com) ### Is India still trying to move cargo through Hormuz? On May 20, the Times of India reported that India was preparing to send ships through the Strait of Hormuz to secure crude and other energy cargoes from Middle Eastern suppliers, citing Bloomberg and people familiar with the matter. Zee News reported a day later that the plan to restart crude and gas shipments through the route was near finalisation but still awaiting final approval. (timesofindia.indiatimes.com) Those reports said any restart would involve Indian tankers returning to the Gulf region after traffic slowed following the escalation in late February. For now, the immediate adjustment visible in May data is that Indian refiners bought more Venezuelan barrels while continuing to rework sourcing and refinery operations as the disruption persisted. (zeenews.india.com) (timesofindia.indiatimes.com)