India depends on imports to meet over 88% of its requirement, and processes over 5 million barrels a day of crude. ReutersIndia is likely to take delivery of around 10-12 million barrels of Venezuelan crude oil this month, the highest in over six years, according to data from commodity market analytics firm Kpler. It comes as the raging war in West Asia has affected global oil and gas flows.This month will also be the first since May of last year to see Venezuelan crude oil being delivered at Indian ports, the data shows. These barrels, although just a fraction of the country’s crude oil imports, are expected to provide some relief and strengthen its crude diversification strategy.India depends on imports to meet over 88% of its requirement, and processes over 5 million barrels a day of crude.Over 40% of the imports come from West Asia through the Strait of Hormuz, where vessel movements have been on halt since early March.Notably, the India-bound Venezuelan oil cargoes were most likely purchased before the West Asia war began, underscoring how diversification of crude supply sources is coming in handy at a time of global crisis.India imports oil from over 41 countries, with the sourcing slate having expanded considerably over the past few years. This has helped reduce dependence on West Asian crude, which is why the crude oil and petrol, and diesel stocks in the country have been adequate. “The development comes at a time when Indian refiners are actively diversifying their crude slate, particularly in response to uncertainties surrounding the Strait of Hormuz. However, April-arriving cargoes were likely secured well before the recent disruptions, underscoring a longer-term strategic shift rather than a purely reactive move.“This trend highlights the growing importance of proactive diversification in global energy markets. Securing an alternative supply in advance is increasingly seen as a competitive advantage,” said Sumit Ritolia, manager, modelling & refining at Kpler.Story continues below this adWith the US capturing Venezuela’s then president Nicolás Maduro early January, Trump had said that Washington would take control of Caracas’s oil sector. After that, global commodity traders Vitol and Trafigura were authorised by Washington to sell Venezuelan oil globally, which had been under US sanctions.“More importantly, heavier Venezuelan barrels tend to yield higher proportions of distillates, particularly middle distillates such as diesel and jet fuel. This is significant in the current environment, where distillate markets remain structurally tight. As a result, these imports not only diversify sourcing but also strengthen India’s ability to sustain strong distillate output,” Ritolia added.India — specifically private sector refining giant Reliance Industries Ltd (RIL) — was a regular buyer of Venezuelan crude prior to the imposition of US sanctions on Caracas in 2019. Following the sanctions, oil imports from Venezuela stopped within a few months.According to India’s official trade data, Caracas was New Delhi’s fifth-largest supplier of oil in 2019, providing close to 16 million tonnes, or about 117 million barrels, of crude to Indian refiners. The bilateral trade between India and Venezuela was $6.40 billion in 2019-20, of which Indian imports—primarily crude oil—were worth $6.06 billion.Story continues below this adIn October 2023, the US eased sanctions on Venezuela’s petroleum sector, authorising oil exports without limitation for six months. This led RIL and a few other Indian refiners to restart oil imports from Venezuela. But then, imports stopped as the sanction waiver was not extended by Washington after its understanding with Caracas on the conduct of free and fair presidential elections in Venezuela broke down.A few months later, RIL was able to restart Venezuelan oil imports after obtaining a sanctions waiver from the US. But in the summer of 2025, the company halted oil imports from Venezuela after Trump administration threatened higher tariffs on countries buying Venezuelan crude.Sukalp Sharma is a Deputy Associate Editor with The Indian Express and writes on a host of subjects and sectors, notably energy and aviation. He has over 16 years of experience in journalism with a body of work spanning areas like politics, development, equity markets, corporates, trade, and economic policy. He considers himself an above-average photographer, which goes well with his love for travel. ... Read More © The Indian Express Pvt Ltd