Reliance Industries Restarts Venezuelan Crude Imports; Demand for Non-Russian Oil Continues to Rise

According to Reuters, citing shipping data, Reliance Industries, India’s largest refinery, recently completed its first purchase of Venezuelan crude oil from Chevron since 2023. Behind this move is the growing demand for non-Russian oil supply among Indian refiners, reflecting a phased adjustment in India’s crude oil import pattern.

It is reported that the growth in Indian refiners’ demand for non-Russian oil is mainly driven by external pressure exerted by the U.S. government on India — the United States has demanded that India reduce crude oil imports from Russia, otherwise it will impose higher tariffs on India. 

As India’s largest refinery, Reliance Industries obtained a license from the U.S. federal government earlier this month, allowing it to legally purchase and sell Venezuelan crude oil, removing policy obstacles for its restart of Venezuelan crude oil imports. Prior to this, Reliance Industries was the largest single buyer of Russian crude oil in India, and its imports of Russian crude oil accounted for a significant share of India’s total imports from Russia, especially before the introduction of the latest U.S. sanctions targeting Rosneft.

Specific transaction details show that Reliance Industries purchased a batch of Boscan crude oil, which is being transported to its destination by the Suezmax tanker "Osman Sincere". It is worth noting that this is the first sale of Boscan crude oil in six years, highlighting the particularity and market significance of this transaction. In addition to this transaction, Reliance Industries also purchased an additional 2 million barrels of Venezuelan crude oil from Vitol, which is expected to be delivered next month. 

An anonymous source told Reuters that the Indian leading refinery is also actively seeking a direct deal with Petróleos de Venezuela, S.A. (PDVSA) to further expand the scale of Venezuelan crude oil imports and diversify its crude oil supply sources.

Signs of recovery in Venezuela’s crude oil exports are also evident. According to Reuters sources, at least three Very Large Crude Carriers (VLCCs) are scheduled to load crude oil cargo at Venezuela’s Puerto José next month. These tankers are chartered by Vitol and Trafigura, two large commodity companies that have obtained U.S. authorization to participate in Venezuelan oil transactions. They are currently one of the core executors of Venezuela’s crude oil exports, and their participation also provides shipping guarantee for Venezuelan crude oil to be transported to Asian markets such as India.

At the same time, the U.S. stance of controlling and promoting Venezuela’s oil exports is clearly visible. Earlier this month, U.S. Energy Secretary Chris Wright stated in an interview during his historic visit to Venezuela that since the United States took control of Venezuela’s oil exports more than a month ago, the country’s oil sales will bring in $5 billion in revenue in the next few months. "Current sales have exceeded $1 billion, and in fact, we have signed several short-term agreements in the next few months, which will bring in an additional $500 million in revenue," Wright added. The core purpose of this visit was to meet with Venezuelan Interim President Delcy Rodriguez to coordinate oil export-related matters.

Industry analysts pointed out that Reliance Industries’ restart of Venezuelan crude oil imports is not only a response to the demand for non-Russian oil supply among Indian domestic refiners, but also an important measure for itself to optimize its crude oil import structure and avoid external policy pressure. 

It is reported that Reliance Industries operates the world’s largest single-point refinery complex, whose equipment configuration is suitable for the efficient processing of heavy crude oil such as Venezuelan crude oil, and the price advantage of Venezuelan crude oil can further optimize its refining profits. 

In addition, with the relaxation of U.S. restrictions on Venezuela’s oil exports, Venezuelan crude oil is gradually returning to the global market. In addition to India, some countries in Asia and Europe are also negotiating import matters, which is expected to reshape the global heavy crude oil trade pattern.

It is worth noting that India has been committed to promoting the diversification of crude oil import sources in recent years to ensure its own energy supply security. Reliance Industries’ expansion of Venezuelan crude oil imports this time is a concrete manifestation of this strategy. 

The series of measures taken by the United States to promote Venezuela’s oil exports and pressure India to reduce Russian oil imports will further affect the global crude oil trade flow. 

Whether the demand for non-Russian oil imports by Indian refiners will continue to rise in the future remains to be further observed by the market.