India Turns to Venezuela as Middle East Disruptions Accelerate Crude Supply Diversification

India has increased its crude oil imports from Venezuela as it seeks to diversify its supplies due to disruptions in Middle Eastern exports. According to ship-tracking data, Indian refiners have purchased over 444,000 barrels per day of Venezuelan crude in August, making it the country's fourth-largest supplier.

This move is part of a broader strategy by India to reduce its reliance on Middle Eastern oil. Since imports resumed in April, Indian refiners have increased purchases from Venezuela, Brazil, and Africa, while continuing to rely heavily on Russian oil.

Russia remains India's dominant crude supplier, with imports reaching close to 2 million barrels per day in August. However, the country is also increasing its domestic oil production to reduce its import dependence.

Sumit Ritolia, Senior Manager - Modelling at Kpler, said that India's strategy is to operate on several fronts simultaneously: increasing domestic production, diversifying overseas suppliers and transportation routes, building strategic and commercial inventories, and accelerating alternatives such as gas, biofuels, EVs, and renewables.