India shifts crude buying to Venezuela

India’s refiners lifted Venezuela to the country’s third-largest crude supplier in May, overtaking Saudi Arabia and the United States as buyers adjusted to disrupted Middle East flows. Kpler data cited by Reuters showed Venezuelan shipments to India at about 417,000 barrels per day so far in May, up from 283,000 barrels per day in April. The change left only Russia and the United Arab Emirates ahead of Venezuela in India’s import mix. The buying shift came as the Strait of Hormuz crisis and wider conflict involving Iran forced Indian refiners to rework supply plans. Reuters reported on May 19 that Bharat Petroleum Corp. was recalibrating its crude import strategy almost daily and raising spot purchases after Middle East supplies were disrupted. Chairman Sanjay Khanna said the state-run refiner had planned to source about 55% of its crude needs for 2026-27 through annual contracts, mainly from Middle Eastern producers. (economictimes.indiatimes.com) ### Why did Venezuelan barrels move up India’s supplier rankings? Venezuelan crude was cheaper and heavier, making it attractive to Indian refiners with complex plants that can process lower-quality grades. Reuters, as carried by the Economic Times, said Reliance Industries and other refiners stepped up purchases of Venezuelan grades in May. The increase followed a return of Venezuelan supplies after a nine-month gap. (uk.finance.yahoo.com) Saudi Arabia’s position slipped as Gulf supply routes came under pressure. The same Reuters report said Venezuela had moved ahead of both Saudi Arabia and the United States while trailing only Russia and the UAE in May. ### Which Indian companies were changing buying plans? (economictimes.indiatimes.com) Bharat Petroleum was among the clearest public examples of the adjustment. On May 19, Khanna told Reuters the company was stepping up spot buying to keep refineries supplied as annual arrangements with Middle Eastern producers were disrupted. He said the company was reviewing imports almost every day. (economictimes.indiatimes.com) Reliance Industries was identified by Reuters as one of the refiners increasing purchases of Venezuelan crude. The report did not indicate a formal policy statement from Reliance, but it tied the rise in Venezuelan volumes to buying by Reliance and other refiners. ### Is this only about price, or also about shipping risk? (uk.finance.yahoo.com) The shipping disruption was broader than a single price move. The source briefing for this story cited continuing disruption around the Strait of Hormuz and the Red Sea, with freight operators still avoiding some routes and passing on higher operating costs. Another industry analysis cited in the briefing said Iranian tensions, Red Sea insecurity and higher maritime insurance costs were forcing traders and governments to treat the disruptions as more than temporary. (economictimes.indiatimes.com) Reuters’ May 19 report on Bharat Petroleum tied those pressures directly to procurement decisions in India. It said India, the world’s third-largest oil importer and consumer, had been hit by rising crude prices and supply disruptions following the closure of the Strait of Hormuz. ### How big is the increase from Venezuela? Kpler’s May tracking showed Venezuelan crude to India rising by roughly 134,000 barrels per day from April to May. (timesofindia.indiatimes.com) The May figure of 417,000 barrels per day compared with 283,000 barrels per day in April, according to Reuters and follow-up reports citing the same data. (uk.finance.yahoo.com) Separate reports citing Kpler said India had become the largest buyer of Venezuelan crude globally, ahead of China and the United States. That claim appeared in secondary coverage and should be read as based on cargo-tracking data rather than an official government release. (economictimes.indiatimes.com) ### What comes next for India’s crude buyers? May cargo data will continue to firm up as the month closes, and refiners’ rankings can still change with late-arriving shipments. Bharat Petroleum’s next buying decisions will remain a near-term indicator after Khanna said on May 19 that the company was reviewing imports daily and increasing spot purchases. (uk.finance.yahoo.com) (financialexpress.com)