Indian refiners are emerging as the largest buyers of Venezuelan crude oil, filling the void left by former top importer China as it cuts purchases following the US’ move to control the Latin American nation’s oil sales.
Shipments to India soared by more than fourfold in March, surpassing those to the US, according to shipping reports compiled by Bloomberg and data from maritime intelligence firm Kpler Ltd. Countrywide exports now stand at 890,000 barrels a day, the highest since December 2019, the data shows.
Fueled by a tide of imported diluents — key additives used to thin heavy, tar-like crude so it can flow through pipelines — Venezuelan production continues to ramp up, in turn boosting flows. March imports rose to nine cargoes, compared with seven in February. Diluents were imported by commodity traders Vitol Group and Trafigura Group, which were entrusted by the Trump administration to help sell the country’s oil, and Chevron Corp., which holds a license to produce and sell the nation’s crude.
Indian refiners, including Reliance Industries Ltd., Hindustan Petroleum Corp. and Indian Oil Corp. have purchased a combined 343,000 barrels a day for loading in March. Indian companies may continue to tap Venezuela’s oil supplies to weather disruptions triggered by the conflict in the Middle East.
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The traders have continued to move Venezuelan oil to storage tanks in the Caribbean. Close to 18 million barrels of crude oil were transported to the Bahamas, Curaçao and St. Lucia this year. Volumes have started to trickle out, with PBF Energy lifting a cargo from the Bahamas. In March, the vessel SFL Tiger loaded oil in Curaçao and signals Italy as its final destination.
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