India's October Venezuelan Crude Oil Imports Expected to Hit Nearly 7-Year High

en.Wedoany.com Reported - On October 8, India's Reliance Industries is expanding its crude oil purchases from Venezuela. Ship tracking agency Kpler expects that India's imports of Venezuelan crude oil in October could reach 465,000 barrels per day, up from about 196,000 barrels per day in September; if all planned cargoes arrive at ports on schedule, this would mark the highest monthly level since December 2019. Reliance Industries is the main participant in this round of purchases, with the imported crude oil mainly shipped to its Jamnagar refining base in Gujarat, India.

The Jamnagar refining complex operated by Reliance Industries has a crude oil processing capacity of approximately 1.4 million barrels per day and can process high-sulfur heavy crude oil from Venezuela. Another set of Kpler data shows that in September, Reliance Industries accounted for approximately 76% of India's Venezuelan crude oil imports. After the United States relaxed restrictions on oil transactions, the company resumed direct purchases of Venezuelan crude oil in 2026.

Venezuela's main export crude grade, Merey, has recently been sold at a discount of about $16 per barrel below the Brent crude benchmark, while Russian Urals crude has been trading at a premium to the benchmark. As Indian refiners expand their Venezuelan crude oil purchases, they also face longer shipping distances and rising tanker freight rates. The Jamnagar refining complex is equipped with units capable of processing high-density, high-sulfur crude oil.

The Venezuelan crude oil expected to arrive in October is all destined for Sikha Port on India's west coast, which serves Reliance Industries' refining base. Ship tracking data also shows that at least two tankers are scheduled to arrive on India's west coast on October 31. If some vessels fail to complete unloading before the end of the month, actual monthly imports will be lower than the current scheduled shipping statistics. Kpler analysts expect that after accounting for port arrival delays, actual October imports may be close to 350,000 barrels per day.

Reliance Industries had previously obtained a U.S. license for direct purchases of Venezuelan crude oil and resumed related trade this year.