Venezuela Overtakes Saudi Arabia as India's Third-Largest Oil Supplier

India's crude oil imports from Venezuela surged in August, pushing Caracas ahead of Saudi Arabia to become India's third-largest oil supplier. The South American nation imported 358,000 barrels per day (bpd) of crude, a 64% increase from July and the highest level since 2020.

The sharp rise in Venezuelan imports came as Indian refiners increased their purchases after the easing of US sanctions on Venezuelan oil. This followed a major change in US policy towards Venezuela's energy sector, which included the issuance of a broad licence allowing PDVSA to sell crude directly to US companies and international markets.

Despite the increase in Venezuelan supplies, Russia remained India's biggest source of crude oil in August, with imports dropping to 2.06 million bpd due to tightened export availability and stronger Chinese competition. Saudi Arabia fell to fourth place among India's crude suppliers after its imports declined by 18% month-on-month.

Kpler noted that Russian crude arrivals are expected to remain lower than the record levels seen in July, while Venezuelan imports are set to reach 350,000 bpd, their highest level since 2020. The analysts also stated that Russian crude flows to India are expected to stabilise between 2.0 million and 2.5 million bpd in the near term.