India is weighing options to increase crude oil purchases from the United States and Venezuela in the context of diversifying supply and strengthening the country’s energy security.
According to industry sources, the government is focusing on assessing different import scenarios from these countries within trade deals with the United States and Venezuela.
“India has asked state-owned refining plants to consider the possibility of buying more American and Venezuelan crude oil, as, according to officials from the Trump administration, the bilateral trade agreement includes a commitment to stop importing Russian products”
– Bloomberg
According to sources, refineries are being advised to prioritize American grades on spot purchases via tenders, while Venezuelan volumes are considered under private arrangements with traders.
The prospects drew attention after U.S. President Donald Trump stated readiness to halt imports of Russian crude oil under the trade deal, though officials in New Delhi did not officially confirm such statements.
India’s official stance is to diversify supply sources, strengthen energy security, and reduce dependence on a single supplier.
At the same time, there are technical and economic constraints on how much American and Venezuelan oil the Indian refining sector can take. American grades are typically lighter, which does not always align with the processing configuration of Indian refineries focused on medium grades. The high cost of transporting from the United States also undercuts the economic sense of large-scale imports. It is also worth considering closer alternatives from West Africa and Kazakhstan.
According to refinery executives, India could potentially take around 20 million tonnes of American oil per year (about 400,000 barrels per day), which would exceed last year’s figures.
The U.S. administration has engaged Vitol Group and Trafigura Group to supply Venezuelan crude after Washington gained control of Venezuela’s energy sector. Indian buyers have recently purchased their first consignments from them.
Context and Prospects for India
Note: Attention is growing to how such steps will affect the global energy chain and prices on world markets.
According to Ukrinform, tensions over trade issues led Trump to lift the 25% tariffs on imports from India, imposed over purchases of Russian oil, and he signaled the possibility of imposing tariffs on countries that continue to trade with Iran.
On February 7, the Indian Coast Guard, with air and naval forces, conducted a major operation, intercepting three oil tankers – a blow to an international oil-smuggling syndicate.
“Their actions show signs of criminal offenses under Article 345 of the Criminal Code of Ukraine ‘Threat or violence against a law enforcement officer’ and Article 194 of the Criminal Code of Ukraine ‘Deliberate destruction or damage to property’.”
– Press Service