India, Venezuela Crude Oil Imports Rise As Saudi Supply Drops

Venezuela Becomes Key Oil Supplier

Venezuela has emerged as India’s third-largest crude oil supplier in May, overtaking Saudi Arabia and the United States. The rise comes as Indian refiners increased purchases of cheaper Venezuelan crude during global supply disruptions. According to Kpler data, Venezuela supplied around 417,000 barrels per day to India in May, compared with 283,000 barrels per day in April. The country had not supplied crude to India during the previous nine months.

Cheaper Crude Drives Demand

The main reason behind the growth in India's and Venezuela's crude oil imports is pricing. Venezuelan crude is cheaper than many other global grades and suits complex refinery systems. Reliance Industries is among the major buyers because its Jamnagar refinery in Gujarat can process heavy, high-sulphur crude efficiently. This makes Venezuela's oil supply to India more attractive during volatile market conditions.

Saudi Supply Falls Sharply

Saudi oil supply to India dropped sharply in May, while Iranian shipments stopped again after briefly resuming in April. India’s crude oil imports rose to nearly 4.9 million barrels per day in May, but remained below February levels. The shift shows how India is diversifying crude suppliers to manage price pressure, West Asia tensions, and fuel market concerns.