Venezuela becomes India’s No.3 crude supplier in May

Introduction: a sharp shift in India’s crude sourcing

Venezuela has emerged as India’s third-largest crude oil supplier so far in May, overtaking Saudi Arabia and the United States. The change comes as Indian refiners increased purchases of cheaper heavy crude amid disruptions linked to the ongoing West Asia conflict. With the Strait of Hormuz effectively becoming inaccessible, refiners have had to rework supply chains quickly. The market response has been a visible shift toward non-Strait routes and Atlantic Basin barrels. Data cited from energy cargo tracker Kpler points to a sharp jump in Venezuelan volumes in a short period. The May supply ordering also shows Saudi Arabia slipping behind Venezuela due to lower shipments. Russia and the United Arab Emirates remained India’s top two suppliers in May.

Venezuela’s return: May volumes jump from April

Kpler data shows Venezuela supplied around 417,000 barrels per day (bpd) to India so far in May. That is sharply higher than 283,000 bpd in April. The May-April increase follows a period where India received zero supplies from Venezuela for the previous nine months. The rapid climb has brought Venezuela into the top tier of suppliers for the month, despite the limited recent history of flows. The article links the renewed trade to refiners seeking heavy crude options and to wider import diversification. It also states Venezuelan crude has made a “notable return” in recent months and helped partially offset weaker Gulf-linked supply.

What triggered the surge: US easing of restrictions

The surge in Venezuelan barrels comes after the United States eased restrictions on Venezuelan oil exports. The article attributes this policy change to events described as the January capture of Venezuelan President Nicolás Maduro. With restrictions eased, Venezuelan oil became more available to buyers, including India, and pricing was described as favorable. The article also notes that, following moves by the Trump administration related to Venezuela, Venezuelan crude is now back in India’s import basket. This reopening, coupled with heavy-crude demand, is cited as a key driver for the recent increase.

Strait of Hormuz disruption forces a rethink

India’s diversification accelerated after the Strait of Hormuz effectively became inaccessible due to the ongoing West Asia conflict. The article notes that nearly 50% of India’s supplies (around 2.5 million bpd) normally transit the chokepoint. With the route shut, India’s crude imports in April fell to around 4.4 million bpd, down from approximately 5.2 million bpd. The squeeze on Gulf-linked flows led refiners to seek alternatives that do not depend on the Strait. The shift is described as a pivot toward the Atlantic Basin and other non-Hormuz-linked barrels.

Russia remains the backbone, UAE stays strong

Even as Venezuelan volumes surged, Russia continued to form the backbone of India’s oil imports. Flows from Russia were estimated at around 1.9 million bpd in May, according to the article. It also cites a mix led by Russia at around 30% to 37% (1.5 to 1.7 million bpd), alongside Saudi Arabia at 0.65 to 0.70 million bpd and the UAE at 0.60 to 0.62 million bpd, with additional barrels from Venezuela, Brazil and minimal Iranian cargoes. The month’s ranking still placed Russia and the UAE in the top two slots. Saudi Arabia, however, slipped behind Venezuela due to lower shipments.

How Middle East barrels are being rerouted

The article addresses how supplies from the Middle East are reaching India if Hormuz is closed. According to an explanation attributed to Mitra, flows are being rerouted via Saudi Arabia’s East-West pipeline to Yanbu (Red Sea) and the UAE’s Habshan-Fujairah pipeline. These routes provide bypass capacity, enabling crude movements via Yanbu and Fujairah to India. The article contrasts these rerouted Middle East barrels with “open-ocean routes” used by non-Gulf crude. This pipeline-led rerouting is presented as a practical workaround during the conflict-related disruption.

Non-Strait sourcing rises as a share of imports

A top oil ministry source said non-Strait sources are fully operational and that India is sourcing more supplies from non-conflict zones. The article states that non-Strait sources accounted for 60% of supplies in 2025, and after the Middle East conflict this increased to 70%. Refiners are reported to be tapping crude from West Africa, Latin America and the US, alongside continued Russian volumes. The article also notes refiners have begun negotiating for additional cargoes from the US, Russia and West African countries to keep supplies adequate if the conflict drags on.

Inventory cushion and contingency options

Government sources said India holds sufficient crude and fuel inventories to meet domestic demand for petrol, diesel and other fuels for six to eight weeks, cushioning against short-term disruption. The article adds that the country has crude oil stocks to last 25 days and fuel for a similar duration. Beyond inventories, contingency plans include drawing from strategic petroleum reserves, commercial stocks, and continuing diversified sourcing from the US, Russia, West Africa and Latin America. The same section states that, in case of a closure, India can tap West Africa, Latin America and the US to make up for Middle East shortfalls, and could also tap Russian oil.

Diesel and gasoil exports pivot to new markets

The article also describes a shift in India’s refined product flows, especially diesel and gasoil, toward Africa and South America as incoming EU sanctions threaten trade links into Europe. India exported about 210,000 bpd of diesel or gasoil to Brazil in September, the highest since January 2022, and three times August levels, based on CAS figures cited. India’s market share for Brazilian gasoil imports rose from 10% in August to 75% in October. In August, India exported nearly 170,000 bpd of diesel or gasoil to West Africa, an all-time high, and in October it shipped about 160,000 bpd to East African markets, another record. The share of exports into Africa rose from 29% in 2023 to almost 40% in 2025, according to the article.

Key numbers at a glance

Why the development matters for energy security

The data points in the article show two parallel responses to disruption: higher dependence on Russia in the short term, and broader diversification to reduce chokepoint risk. Venezuela’s rise to third place in May highlights how quickly India’s supplier rankings can change when logistics and pricing shift. The rerouting of Saudi and UAE barrels via pipelines indicates that some Gulf supply can still reach India, but through alternative corridors. At the same time, the higher share of non-Strait sourcing and negotiations with West Africa, Latin America and the US show refiners are trying to keep optionality. The inventory buffer of six to eight weeks is another stabiliser cited in the article, alongside strategic reserves and commercial stocks. Together, these measures reflect a focus on continuity of supply rather than reliance on any single geography.

What to watch next

The article indicates Indian refiners are in discussions to buy additional crude from West Africa, Latin America and the United States if the conflict continues. It also references a 30-day waiver by the US Treasury Department to allow sale and delivery of sanctioned Russian oil already loaded on vessels to India, creating another short-term avenue for supply. For May, the immediate marker is whether Venezuelan flows remain elevated and whether supplier rankings continue to shift as rerouting and negotiations play out. Official import data for some months is still awaited in the narrative, but Kpler-based tracking is already showing material changes in sourcing patterns.