Venezuela becomes India's third-largest supplier

Venezuela moved up to become India’s third-largest crude supplier in May 2026 after Indian refiners replaced barrels they had expected from Iran and, to a lesser extent, Iraq. Indian media, citing Kpler ship-tracking data, reported that Venezuelan supplies rose to about 417,000 barrels per day in May, ahead of Saudi Arabia and the United States. That change is the clearest sign yet that the West Asia crisis is no longer just a shipping or military story for India. It is changing who sells crude to Indian refiners, raising freight and insurance costs for manufacturers, and pushing governments and ports to build workarounds around disrupted routes. Honda Cars India said on May 22 that prolonged tensions could hit production planning, component sourcing and logistics operations. (timesofindia.indiatimes.com) ### How did Venezuela overtake Saudi Arabia and the United States? Indian refiners increased purchases of Venezuelan heavy crude because it was cheaper and suited complex refineries that can process heavier grades. The Times of India reported on May 22 that Venezuela overtook both Saudi Arabia and the United States in India’s import rankings for the month so far. (fortuneindia.com) Iranian cargoes that had been expected by some buyers did not arrive, according to those reports, and flows from Iraq were also disrupted. That forced refiners to look farther afield for replacement barrels at short notice. Kpler figures cited in those reports showed India’s total crude imports in May at roughly 4.9 million barrels per day, up from April. (timesofindia.indiatimes.com) ### Why are Indian companies beyond oil now talking about West Asia? Honda Cars India said on May 22 that the crisis could disrupt production and logistics if tensions persist. Fortune India reported that Takashi Nakajima, the incoming president and CEO of Honda Cars India, pointed to higher freight costs, uncertainty on shipping corridors, volatile crude prices and delays in component movement. (timesofindia.indiatimes.com) Crisil and industry groups have been making a similar point for weeks. Fortune India reported on May 18 that Crisil called the disruption the “largest energy shock on record” and said the effects extended beyond oil into freight, insurance costs, supply chains and fertilisers. The Society of Indian Automobile Manufacturers said in April that West Asia tensions were becoming a risk to costs, supply chains and demand visibility. (fortuneindia.com) ### What does a crude reshuffle have to do with car factories? Freight costs and delivery times are the link between the oil story and the factory story. When crude cargoes are rerouted, delayed or repriced, the same disruption often hits container shipping, war-risk premiums, marine insurance and the timing of imported components. Honda’s warning matters because it came from an automaker describing early operational stress rather than a macroeconomic forecaster. (fortuneindia.com) Indian auto and component makers have already been dealing with supply uncertainty tied to West Asia. Fortune India reported in March that several car exporters were reviewing shipments to the Middle East and North Africa because of war-risk premiums and route uncertainty. ### What are governments and ports doing about rerouting? (fortuneindia.com) Saudi Ports Authority Mawani launched a new cargo service on May 21 linking Jeddah Islamic Port with Salalah in Oman and Djibouti. Saudi state media reports, carried by regional outlets, said the service has capacity of up to 1,730 TEUs and is intended to strengthen maritime connectivity. (fortuneindia.com) That route does not replace the Strait of Hormuz for oil flows, but it shows how governments are adding alternative corridors as disruptions persist. The practical effect is to create more redundancy for cargo moving around the Red Sea and Gulf region, even if at higher cost. That inference is based on the route design and official descriptions of the service’s purpose. (english.alarabiya.net) ### What should readers watch next? May import data from Kpler and Indian refiners will show whether Venezuela’s rise was a one-month substitution or a more durable shift in India’s crude basket. Honda Cars India and other manufacturers will also be watched for any disclosed changes to production schedules, sourcing plans or export dispatches if freight costs and component delays continue. (timesofindia.indiatimes.com) (gulfnews.com)