India is set to resume crude oil imports from Venezuela after a hiatus of three years, following the easing of US sanctions on Caracas. Leading the resurgence is private sector giant Reliance Industries (RIL), which has booked three tankers scheduled to load oil from Venezuela in December and January, according to trade sources.
India, particularly private sector refiners RIL and Nayara Energy (NEL), was a regular buyer of Venezuelan crude before US sanctions were imposed in 2019. The sanctions halted oil imports from Venezuela, with the last shipment recorded in November 2020. Venezuela was the fifth-largest supplier of oil to India in 2019, providing nearly 16 million tonnes of crude.
Easing of US Sanctions
In October of this year, the United States eased sanctions on Venezuela’s oil sector, allowing oil exports without limitation for a six-month period. Venezuela, a member of the Organization of the Petroleum Exporting Countries (OPEC), possesses the world’s largest proven oil reserves.
Resumption of Imports
Recent shipping fixtures indicate that three super tankers, each capable of carrying up to 270,000 tonnes of crude oil, have been chartered by RIL. Two tankers are scheduled to load oil in the coming week, while one is set for early January. The move comes after Petroleum Minister Hardeep Singh Puri expressed India’s willingness to purchase Venezuelan oil if available at a discount.
Market Dynamics
India, as the world’s third-largest consumer of crude oil, has sought to diversify its sources amid oil market volatility. In the past two years, India increased Russian crude imports, drawing ire from the West. RIL’s entry into the Venezuelan market is seen as a significant development that may impact Chinese refiners, which were previously the primary buyers of Venezuelan oil.
Industry Perspectives
Industry analysts believe that with Reliance’s resurgence in Venezuelan oil imports, Chinese refiners could face adverse effects. Kpler’s lead crude analyst, Viktor Katona, anticipates that RIL will be the main Indian buyer of Venezuelan crude in the coming months. Nayara Energy, a large buyer of discounted Russian oil, is expected to continue its focus on Russian crude imports.
India is set to resume crude oil imports from Venezuela after a hiatus of three years, following the easing of US sanctions on Caracas. Leading the resurgence is private sector giant Reliance Industries (RIL), which has booked three tankers scheduled to load oil from Venezuela in December and January, according to trade sources.
India, particularly private sector refiners RIL and Nayara Energy (NEL), was a regular buyer of Venezuelan crude before US sanctions were imposed in 2019. The sanctions halted oil imports from Venezuela, with the last shipment recorded in November 2020. Venezuela was the fifth-largest supplier of oil to India in 2019, providing nearly 16 million tonnes of crude.
Easing of US Sanctions
In October of this year, the United States eased sanctions on Venezuela’s oil sector, allowing oil exports without limitation for a six-month period. Venezuela, a member of the Organization of the Petroleum Exporting Countries (OPEC), possesses the world’s largest proven oil reserves.
Resumption of Imports
Recent shipping fixtures indicate that three super tankers, each capable of carrying up to 270,000 tonnes of crude oil, have been chartered by RIL. Two tankers are scheduled to load oil in the coming week, while one is set for early January. The move comes after Petroleum Minister Hardeep Singh Puri expressed India’s willingness to purchase Venezuelan oil if available at a discount.
Market Dynamics
India, as the world’s third-largest consumer of crude oil, has sought to diversify its sources amid oil market volatility. In the past two years, India increased Russian crude imports, drawing ire from the West. RIL’s entry into the Venezuelan market is seen as a significant development that may impact Chinese refiners, which were previously the primary buyers of Venezuelan oil.
Industry Perspectives
Industry analysts believe that with Reliance’s resurgence in Venezuelan oil imports, Chinese refiners could face adverse effects. Kpler’s lead crude analyst, Viktor Katona, anticipates that RIL will be the main Indian buyer of Venezuelan crude in the coming months. Nayara Energy, a large buyer of discounted Russian oil, is expected to continue its focus on Russian crude imports.
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