US administration encourages India to buy Venezuelan oil to diversify from Russia
US Secretary of State Marco Rubio's visit to India highlights efforts to increase Venezuelan crude supplies to the country.
The Donald Trump administration wants India to increase its purchases of crude oil from Venezuela, according to a report by the Times of India. US Secretary of State Marco Rubio recently visited India to discuss these possibilities with Reliance, signalling a push to expand the Venezuelan market while encouraging New Delhi to diversify away from Russian oil.
Russia currently remains the largest crude oil supplier to India, as Indian refiners have increased purchases of discounted Russian barrels. The US has repeatedly urged India to reduce its reliance on Russian energy, making oil sourcing a key issue in bilateral trade and diplomatic talks.
Experts noted that Venezuelan crude is difficult to refine due to high viscosity, high sulphur content, and large residue yields. Commodity analyst Natalia Katona told the Times of India that the crude suits complex refineries but cannot be handled economically by every refinery. Kpler Senior Crude Oil Analyst Naveen Das added that more than half of each barrel is residue, requiring complex refineries with cokers and hydrocrackers to earn a margin.
India's Venezuelan crude share was 7.4 per cent in August, 3.7 per cent in September, and 5.7 per cent in October. Praveen Rai, Director at Grant Thornton Bharat, estimated that India can realistically absorb between 400,000 and 550,000 barrels per day of Venezuelan crude on a sustained basis.
Naveen Das told the Times of India that a realistic share for India would be 6-9 per cent. He noted that a share near 10 per cent would require more than 500,000 barrels per day, which Venezuela's current export base might not be able to supply without displacing other buyers.
