India to Increase Crude Oil Imports From Venezuela;Imports to Reach Seven-Year High

India is set to increase its crude oil imports from Venezuela. Estimates indicate that imports of Venezuelan crude could rise to 465,000 barrels per day in October, compared with 196,000 barrels per day in September.

This would take India's imports of Venezuelan oil to their highest level since December 2019, marking a seven-year high.

The major factor attracting Indian refiners is the steep discount available on Venezuelan crude. Venezuela's main crude grade, Merey, is currently being sold at a discounted price. Venezuelan oil is expected to arrive at the Sikka port in Gujarat in October. The deep discount helps offset the cost of transporting the crude from Venezuela as well as the higher processing costs associated with Merey, which has a high sulphur content.

South Asian countries and oil refiners have been cutting their purchases of Russian crude amid the United States' threat to impose a 100 per cent tariff on countries buying crude oil from Russia under sanctions legislation.

India's crude oil imports from Russia fell to around 35 per cent in September, compared with 56 per cent in July.