Reliance Buys 2 Million Barrels Venezuelan Crude: Diversification Milestone
April delivery at $6.5-$7 discount via Vitol; first since mid-2025 post-US shift
Reliance Industries Ltd (RIL) has secured a cargo of approximately 2 million barrels of Venezuelan crude oil from trader Vitol, marking India’s first major purchase from the Latin American nation since mid-2025. Slated for April 2026 delivery to the Jamnagar refinery complex, the deal at a $6.5-$7 per barrel discount to Brent underscores New Delhi’s aggressive push to diversify crude sources amid US trade pressures and Russian supply curbs.
• Volume: ~2M barrels (Vitol VLCC)
• Grade: Likely Merey heavy/sour crude
• Price: $6.5-$7/bbl below ICE Brent
• Delivery: April 2026 to Jamnagar
• Context: Post-US control of Venezuelan sales
Reliance Venezuelan Oil Purchase: Strategic Context
The Reliance Venezuelan oil purchase revives ties paused by prior US sanctions. Last year, Washington seized Venezuelan oil sales under Maduro, granting licenses to Vitol/Trafigura. Trump’s trade linkage – lower tariffs for India if Russian imports drop – accelerated this shift. Reliance, once top Russian buyer (500k bpd from Rosneft), now pivots to Venezuela’s heavy grades suiting its world-largest 1.24M bpd Jamnagar facility.
India’s Oil Diversification Drive
India, world’s 3rd-largest oil importer (5.2M bpd), cut Russian reliance from 40% peak to ~30% post-US sanctions on Rosneft/Lukoil. Venezuela fills gap: cheap, heavy crude optimizes Reliance’s coking units for petrol/diesel yields. Other refiners like IOC/HPCL eye similar cargoes. Govt welcomes “commercial viability” buys.
| Source | Share (%) | Change YoY |
|---|---|---|
| Russia | 30 | -10% |
| Iraq | 20 | +2% |
| Saudi | 18 | Stable |
| Venezuela | 5 | +5% |
| Others | 27 | +3% |
Jamnagar Refinery Edge in Reliance Venezuelan Oil Deal
Reliance’s Jamnagar – 27% global capacity – thrives on sour/heavy feeds like Merey (API 16, 3.5% sulfur). Discounted buys boost margins ~$2-3/bbl via superior cracking. Past Venezuela imports peaked 25% of Caracas exports (2019). Pause ended with US licenses post-op against Maduro.
Global Trade Shifts & Risks
US intervention normalized Venezuelan flows; Trump ties India deals to Russia cuts. Risks: Volatility in discounts, sanctions flux. Benefits: Cheaper feedstock amid Brent ~$80/bbl.
FAQs: Reliance Venezuelan Oil Purchase
Q: Why now? US licenses + Russia curbs.
Q: Impact on fuel prices? Potential savings passed to consumers.
Q: More deals? Likely; IOC/HPCL scouting.
Reliance Venezuelan oil purchase exemplifies smart diversification, fortifying India’s energy security.
State Correspondents | Reliance energy news updates
