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Venezuela eyes India
Venezuela has emerged as India’s third-largest crude oil supplier in May as the war on Iran and the closure of the Strait of Hormuz disrupt traditional energy supplies, with energy tracking data showing shipments from Venezuela to India nearly 50 percent higher than April.
“Venezuela has emerged as India’s third-largest crude oil supplier this month”
US Secretary of State Marco Rubio said Washington wants to ensure India follows through on plans to diversify away from Gulf supplies, and he said, “We want to sell them as much energy as they’ll buy.”
Al Jazeera reported that Venezuelan Acting President Delcy Rodriguez is expected to travel to India next week to discuss oil sales, while Rubio said he would travel to India from May 23 to 26 for talks on trade, defence cooperation and energy security.
The sources tie the shift to the Strait of Hormuz becoming inaccessible for India’s crude imports, with nearly half of India’s crude oil imports normally shipped from Gulf producers through the Strait of Hormuz, plus large volumes of liquefied natural gas and petroleum gas.
Al Jazeera also said India had recently resumed importing Iranian crude in April after a seven-year gap, but those shipments stopped again this month due to the ongoing US naval blockade of Iranian ports.
Rubio’s trip and analysts
CNBC TV18 reported that Rubio signalled Washington wants to expand Venezuelan crude supplies to India, and it said Venezuela’s interim president is also expected to visit New Delhi shortly after Rubio’s four-day trip beginning May 23.
CNBC TV18 quoted energy analyst Narendra Taneja saying, “Indian refiners have known Venezuelan oil for a very long time,” and it added that the recent surge in Venezuelan imports was “basically oil already sitting in tankers floating on the high seas.”
The same CNBC TV18 report said Rubio’s visit covers Kolkata, Agra, Jaipur, and New Delhi, and it said the trip concludes on May 26 with a Quad foreign ministers’ meeting.
Al Jazeera reported that Washington took control of Venezuela’s oil industry following the abduction of former President Nicolas Maduro from Caracas by US forces in January, and it said Washington now appears eager to push Venezuelan crude back onto the global market.
Al Jazeera also quoted energy policy researcher Marc Ayoub saying, “India’s options right now are essentially sanctioned Russian crude or heavy crude from Venezuela,” and it said the waiver on Russian oil only applies to cargoes already loaded.
Supply gaps and pressure
The sources describe a tightening of supply and a reshuffling of India’s crude sourcing as Saudi Arabia’s shipments nearly halved from 670,000 barrels per day in April to about 340,000 bpd this month, while Iranian cargoes did not arrive due to the US naval blockade of Iranian ports.
“Supplies from Saudi Arabia – previously India’s third-largest supplier – have nearly halved”
Al Jazeera said Indian officials expressed concern over maritime security in the Gulf, with 13 Indian ships stranded in the region and New Delhi wanting to secure their return before sending more vessels to load fuel cargoes.
Al Jazeera also said several India-linked ships have been seized or attacked near the Strait of Hormuz and the coast of Oman, and it reported that an Indian-flagged cargo vessel sank in Omani waters after a fire caused by what was suspected to be a drone or missile attack.
In parallel, Al Jazeera said India continued relying on Russian crude already loaded onto tankers at sea after Washington announced another 30-day extension of a sanctions waiver covering those shipments, but analysts said the measure is only a short-term fix.
Al Jazeera framed the stakes as pressure from Washington to reduce dependence on Russian energy imports, while Venezuelan crude is presented as a potential alternative as the Strait of Hormuz remains blocked.
