- Indian refiners are likely to import crude oil from Venezuela at a discounted rate following the easing of US sanctions on the country.
- Eased sanctions open the possibility of Venezuela’s oil sector recovering in the medium to long term, assuming political agreements are respected.
- India was a regular buyer of Venezuelan crude oil before the sanctions, with imports representing around 5%-7% of India’s total crude oil imports.
- Venezuelan crudes imported by Indian refiners were offered substantial discounts compared to crudes from other regions.
- If refining economics favor Venezuelan crude, Indian refiners may need to displace crude from their existing sources, including Middle Eastern, Latin American, and US crudes.