India's Reliance Industries Ltd. is considering resuming purchases of Venezuelan crude oil if access is opened to non-US buyers, signaling a potential shift in its sourcing strategy. The company, which operates the world's largest refining complex, stated it awaits clarity on whether Venezuelan oil can be sold beyond the United States following recent geopolitical developments.
The move comes after the United States and Venezuela reached a deal to allow exports of up to $2 billion worth of Venezuelan crude to the US, equivalent to around 30–50 million barrels. This agreement followed the capture of Venezuelan President Nicolas Maduro by US forces on January 3. Reliance had previously halted Venezuelan oil imports in March last year after Washington imposed a 25% tariff on such purchases.
Analysts see a near-term margin upside for Reliance if Venezuelan crude exports reopen. Dharmesh Kant of Chola Securities noted that while some estimates suggest a $5–8 per barrel advantage, he expects gains closer to $3–4 per barrel after currency adjustments. Jefferies analysts also highlighted that securing Venezuelan crude at a discount to Brent could support Reliance's refining margins.
Concurrently, US government-backed deals to export Venezuelan crude have attracted major global players including oil major Chevron Corp and trading giants Vitol and Trafigura. These companies are positioning themselves to market Venezuelan crude as Washington seeks to control the long-term management of Venezuela's oil sales and profits. Preliminary agreements are focused on marketing up to 50 million barrels of oil from inventories held by Venezuela's state-run PDVSA.
The developments occur as India has scaled back purchases of Russian oil due to Western pressure, making Venezuelan crude a potential alternative for refiners like Reliance if sanctions are eased.
