Venezuela oil supply to India jumps after Hormuz Strait disruptions
India has sharply increased crude imports from Venezuela, making the Latin American nation the country’s third-largest oil supplier amid growing instability in the Middle East and disruptions around the Strait of Hormuz.
The rise in Venezuela oil supply comes as Indian refiners look for cheaper and more stable alternatives to Gulf crude after tensions around the strategic shipping route affected global energy flows.
According to data from energy analytics firm Kpler, Venezuela overtook both Saudi Arabia and the United States in May 2026. Only Russia and the UAE supplied more crude oil to India during the month.
“Indian refiners have long shown interest in Venezuelan crude because it is cheaper and suitable for complex refining systems,” Kpler analyst Nikhil Dubey said.
India increases Venezuelan crude imports
Kpler data showed India imported nearly 4.17 lakh barrels per day of Venezuelan crude in May, up almost 50% from April levels.
Before April, India had not imported Venezuelan oil for nearly nine months.
Industry experts said two major factors drove the increase. First, conflict and shipping disruptions in West Asia affected supply from traditional Gulf producers. Second, Venezuelan heavy crude remains cheaper than several Middle Eastern grades.
Indian refiners, especially Reliance Industries, have the infrastructure needed to process high-sulphur heavy crude efficiently.
Saudi and Iraqi oil supplies decline
India’s crude imports from Saudi Arabia fell sharply in May. Supplies dropped to nearly 3.4 lakh barrels per day from 6.7 lakh barrels per day in April.
Imports from Iraq also remained significantly below February levels.
The report said rising Saudi crude prices pushed Indian refiners towards lower-cost Venezuelan supplies.
Meanwhile, Russian oil exports to India continued to rise as refiners sought to offset reduced Middle East shipments.
Hormuz tensions reshape global energy trade
The Strait of Hormuz remains central to the global energy market, with nearly 20% of the world’s seaborne oil and gas passing through the route.
Recent conflict involving Iran, the United States and Israel has disrupted shipping activity and increased insurance and freight costs.
Reports also suggested that Iran is considering a permit and service-fee system for vessels passing through the strait, drawing criticism from Washington.
US Secretary of State Marco Rubio said no country should accept toll collection in an international waterway.
Brent crude prices have already crossed $105 per barrel amid fears of supply shortages.
Venezuela seeks long-term energy partnership with India
The report said Venezuelan acting President Delcy Rodríguez may visit India next week for talks related to energy cooperation.
Venezuela holds one of the world’s largest proven crude oil reserves, estimated at nearly 303 billion barrels.
Analysts believe both Washington and Caracas now see India as a key long-term buyer as global oil supply chains undergo rapid changes following the Hormuz crisis.
