India open to Venezuelan oil while US exemption lasts

India will continue buying crude from Venezuela as long as the US sanctions exemption remains in place and the economics are favourable, government sources told The Hindu Businessline. In August, Venezuela became India's fourth largest crude supplier at 444,000 barrels per day, overtaking Iraq and the United States, according to ship-tracking data from Kpler. The US eased sanctions on Venezuela's central bank in April, three months after former leader Nicolas Maduro was seized by US forces and an interim government led by Delcy Rodriguez took charge.

The Hindu Businessline, citing a source, noted that New Delhi does not want to make long-term sourcing strategies around Venezuelan crude because sanctions could be reimposed. The crude is heavy, requiring specialised refining, and the voyage takes five to six weeks. Rediff.com, citing Kpler's Sumit Ritolia, reported that Russian crude remains India's dominant supply at close to 2 million barrels per day in August, while Latin American supplies including Venezuela and Brazil rose to 12.7 per cent of the import basket from 3.5 per cent a year earlier.

India's overall crude imports have remained around 5 million barrels per day, keeping refinery operations resilient despite Middle East disruptions. Freight and insurance costs from longer voyages remain a risk, Ritolia said, adding that diversification helps supply security but cannot fully insulate India from global price shocks.