India’s crude oil import strategy has undergone a major shift in May 2026, with Venezuela emerging as the country’s third-largest supplier of crude oil. The South American nation has overtaken long-time key exporters such as Saudi Arabia and the United States as Indian refiners ramp up purchases of discounted heavy crude oil.
According to data from energy intelligence platform Kpler, Venezuela supplied nearly 417,000 barrels per day (bpd) of crude oil to India during the first three weeks of May. This marks a significant rise from April’s 283,000 bpd, especially after no Venezuelan oil shipments were recorded for India over the previous nine months.
The increase in imports has been largely driven by private refiners such as Reliance Industries, which operate advanced refining facilities capable of efficiently processing heavy and high-sulphur crude grades. Industry analysts say Venezuelan crude remains economically attractive due to its lower pricing compared to Middle Eastern alternatives.
The shift comes at a time when India is diversifying its energy sourcing strategy following disruptions in West Asia. Shipping uncertainty around the Strait of Hormuz and reduced supplies from Iran and Iraq have forced refiners to look for alternative crude suppliers.
Saudi Arabia’s oil exports to India have also declined sharply this month. Kpler data indicates Saudi shipments fell to around 340,000 bpd in May, down from nearly 670,000 bpd in April. Analysts attribute the decline mainly to aggressive pricing of Saudi crude, making Venezuelan barrels more competitive for Indian buyers seeking to maintain refinery margins during volatile market conditions.
Meanwhile, Russia and the United Arab Emirates continue to remain India’s top two crude suppliers. However, Venezuela’s rapid comeback highlights how global oil trade flows are being reshaped by geopolitical tensions, sanctions adjustments, and changing refinery economics.
Originally published on 24×7-news.com.
