India Turns to Venezuela Amid Middle East Disruptions
India is diversifying its crude oil imports in response to disruptions caused by the Iran conflict and the Strait of Hormuz. Ship tracking data from Kpler shows that Indian imports from Venezuela have risen sharply, making the South American producer India's fourth-largest supplier.
In August, Venezuelan supplies reached approximately 444,000 barrels per day, surpassing Iraq's 118,000 bpd and the United States' 153,000 bpd. This marks a significant increase since imports resumed in April, with Indian refiners also purchasing more Brazilian and African crude.
Despite this diversification, Russia remains India's dominant supplier, accounting for nearly 2 million bpd in August and over half of India's total crude intake. Senior Manager - Modelling at Kpler, Sumit Ritolia, notes that India's strategy is 'operating on several fronts at once' to increase domestic production, diversify overseas suppliers, build strategic inventories, and accelerate alternatives such as gas, biofuels, EVs, and renewables.
The shift highlights a broader strategy emerging from the disruption: India is not moving away from oil in the near term but is seeking to make the crude it still needs more secure and resilient by widening its supplier base and transportation options. Ritolia emphasizes that replacing Middle Eastern barrels entirely is neither practical nor economical for India.