Indian Oil, HPCL Buy 2 Million Barrels of Venezuelan Oil
India’s state‑owned refiners Indian Oil Corporation and Hindustan Petroleum Corporation Ltd have jointly purchased 2 million barrels of Merey crude oil from Venezuela’s Trafigura for delivery in the second half of April, according to trade sources familiar with the deal. IOC is set to lift about 1.5 million barrels and HPCL about 500,000 barrels on a single very large crude carrier bound for India’s east coast. This marks the first Venezuelan oil purchase by HPCL, while IOC has previously sourced such crude.
The move is part of efforts by Indian refiners to diversify oil imports and reduce dependence on Russian crude, aligning with broader trade and energy strategy shifts. The Venezuelan oil is priced against the Dubai benchmark, similar to recent heavy crude purchases by Indian refiners at discounted rates. HPCL plans to process its cargo at its upgraded Visakhapatnam refinery, while IOC has processed Venezuelan crude at Paradip.
The deal comes amid evolving global energy dynamics, including U.S. licences allowing traders like Trafigura and Vitol to market Venezuelan crude following geopolitical developments. India’s overall crude import strategy is balancing supply security, pricing advantages, and geopolitical considerations, with Venezuelan oil resuming as an opportunistic source under current market conditions.
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