Indian Oil Minister, Hardeep Singh Puri, stated on Wednesday that Indian refiners are capable of processing Venezuelan oil and are open to purchasing it if it is available at a lower price. This announcement comes just days after the United States temporarily lifted sanctions on Venezuela’s oil sector.
India, as the world’s third largest oil importer and consumer, relies on overseas sources for over 80% of its oil needs and is looking to reduce its crude import bill. Puri emphasized the importance of increasing oil supplies in the market, stating, “It is always good when more supplies come to market. We will buy from wherever we can get cheaper oil.”
Venezuela possesses one of the largest oil reserves in the world, and if production is increased on a large scale, it could have a dampening effect on global oil prices, according to Puri. The South American country has been under severe sanctions since 2019, but these restrictions were recently lifted by the US in response to an agreement reached between the Venezuelan government and opposition parties for the 2024 election.
The US Treasury Department has issued a new general license that allows Venezuela to produce and export oil to its chosen markets without limitations for the next six months. Puri mentioned that Indian Oil Corp and Reliance Industries have previously purchased Venezuelan oil.
India’s interest in buying Venezuelan oil highlights the country’s ongoing efforts to secure affordable and diverse sources of energy.
