Venezuela Becomes India’s Third-Largest Crude Oil Supplier Amid West Asia Crisis
New Delhi, May 22: Venezuela has emerged as India’s third-largest crude oil supplier in May 2026, overtaking Saudi Arabia as Indian refiners increased purchases of cheaper heavy crude amid ongoing disruptions linked to the West Asia conflict.
Venezuela’s Oil Exports To India Surge
According to energy cargo tracker Kpler, Venezuela supplied nearly 417,000 barrels per day (bpd) to India in May, sharply higher than 283,000 bpd in April. The country had supplied virtually no crude to India during the previous nine months.
The surge followed the easing of US restrictions on Venezuelan oil exports earlier this year.
Russia And UAE Continue To Lead
Despite Venezuela’s sharp rise, Russia and the United Arab Emirates remained India’s top two crude suppliers in May.
Russian crude imports continued at nearly 1.9 million bpd, remaining crucial for India’s energy security because shipments bypass the Strait of Hormuz through Baltic, Black Sea, and Pacific routes.
Indian Refiners Prefer Cheaper Heavy Crude
Analysts say Indian refiners have traditionally preferred Venezuelan crude because:
- It is cheaper than many Gulf grades
- It suits India’s complex refining infrastructure
- It produces strong diesel and jet fuel yields
Reliance Industries, which operates the Jamnagar refinery complex in Gujarat, is particularly well-equipped to process heavy, high-sulphur Venezuelan crude.
Kpler analyst Nikhil Dubey said Indian refiners have long shown interest in Venezuelan barrels due to their “attractive economics” and refinery compatibility.
Strait Of Hormuz Disruptions Reshape Oil Trade
The ongoing conflict in West Asia and disruptions around the Strait of Hormuz have forced India to diversify its crude sourcing strategy.
Indian refiners are increasingly turning toward:
- Venezuela
- Russia
- Brazil
- West Africa
- The United States
to reduce dependence on Gulf supplies.
Saudi Arabia’s Share Drops Sharply
Saudi crude shipments to India nearly halved to around 340,000 bpd in May from 670,000 bpd in April, partly due to aggressive pricing and regional shipping disruptions.
Meanwhile, Iraqi oil imports partially resumed but remained far below pre-conflict levels.
Alternative Routes Help Maintain Supplies
To avoid Hormuz-linked disruptions:
- Saudi Arabia is using the East-West pipeline to Yanbu on the Red Sea
- UAE exports are moving through the Habshan-Fujairah pipeline
These alternate routes are helping maintain crude flows despite maritime tensions in the Gulf region.
