In a significant shift in global energy markets, Venezuela has become India's third-largest supplier of crude oil as of May 2026, outranking both Saudi Arabia and the United States. This development sees Venezuela now trailing only Russia and the United Arab Emirates in providing crude to the Indian market.
The change comes as Indian refiners, including Reliance Industries, have ramped up their acquisition of Venezuela's more economical, heavier crude grades. This surge in imports from the South American nation follows the easing of export restrictions by the United States on Venezuela, which had previously curtailed its ability to sell oil internationally.
India's Rising Crude Imports
Overall, India's total crude imports saw an 8 percent month-on-month increase in May, reaching 4.9 million barrels per day (bpd). However, this figure remains 5 percent below the 5.2 million bpd recorded in February, prior to the conflict in Iran that impacted shipments from West Asia.
Amidst these shifts, US Secretary of State Marco Rubio affirmed America's readiness to supply India with as much energy as it requires. Speaking in Miami before a visit to New Delhi, Rubio highlighted historic levels of US oil production and exports, also acknowledging potential opportunities with Venezuelan oil.
Venezuelan Supply Resurgence
Energy cargo tracker Kpler reported that Venezuela supplied India with 417,000 bpd in May, a substantial rise from 283,000 bpd in April. This marks a dramatic return to the Indian market after a nine-month period with no Venezuelan crude imports, directly linked to the resumption of supplies after US sanctions were eased.
Nikhil Dubey, lead analyst-refining at Kpler, noted strong interest from Indian buyers in Venezuelan crude due to its attractive pricing and suitability for complex refining systems. This economic advantage has played a crucial role in its rapid re-entry and ascent in the Indian supply chain.
Impact on Traditional Suppliers
The rise of Venezuela has coincided with a reduction in supplies from Saudi Arabia, which was previously India's third-largest crude provider before the Iran conflict. Saudi Arabian shipments to India nearly halved in May, dropping to 340,000 bpd from 670,000 bpd in April. Dubey attributed this decline primarily to the aggressive pricing strategies adopted by Saudi Arabia.
While US sanctions easing had also permitted India to resume crude imports from Iran in April after a seven-year hiatus, no Iranian cargoes arrived in May due to a US naval blockade of Iranian ports. Similarly, Iraqi supplies to India in May stood at 51,000 bpd, a significant decrease from 969,000 bpd in February, largely due to disruptions caused by the near closure of the Strait of Hormuz in April.