Vitol to send Venezuelan crude to Indian refineries

Indian refiners are awaiting tankers of Venezuelan crude from Vitol, media reported on Tuesday, after Indian Oil Corp (IOC) and Mangalore Refinery and Petrochemicals (MRPL) purchased 2 million barrels of Venezuelan crude for delivery in November. This is part of a broader trend as India continues to increase imports from Venezuela after the US Treasury allowed trade under specific conditions despite ongoing sanctions targeting the regime of President Nicolas Maduro.

Indian Oil Corp, the country’s largest refiner, is set to receive 1.2 million barrels of crude, while MRPL will receive 800,000 barrels of Merey heavy crude. While MRPL does not typically buy this grade of oil, the change suggests that Indian refiners are adjusting their strategies to meet both processing needs and cost management in the current market. Vitol, IOC and MRPL did not comment on the details of the deal and it is not clear if Vitol has a license or if it bought the crude from someone else with a license and is reselling it.

This is not the first time that India has moved quickly to secure Venezuelan crude. Earlier this year, Reliance Industries, India’s largest private refiner, resumed purchases of Venezuelan oil after receiving a license from the US. The deal includes swapping heavy naphtha, a key diluent, for Venezuelan crude. As long as these exemptions remain in place, Indian refiners will continue to buy Venezuelan oil to ensure a steady supply for their refineries, which are built to process heavier crudes.

For India, the world’s third-largest crude importer, Venezuelan crude offers a valuable option to keep refineries running efficiently.

Most Indian refiners have resumed purchases of Venezuelan crude through intermediaries, and Reliance reportedly sought to discuss direct sales with Venezuelan state oil firm PDVSA in March.

By Julianne Geiger for Oilprice.com

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