Delcy Rodríguez: Will Venezuelan oil earn a permanent place in India\s energy mix？

Venezualan oil output has risen this year, but remains far below historic levels

Venezuelan crudes return coincides with growing concerns about supply disruptions in the Middle East and uncertainty around the Strait of Hormuz.

However, the timing of the initial cargoes suggests they were likely secured well before the recent disruptions, highlighting a longer-term sourcing strategy rather than a purely reactive response, Sumit Ritolia, lead research analyst at Kpler, said.

For Indian refiners, however, the attraction is not merely geopolitical.

Relatively cheaper to buy but challenging to refine, Venezuelan crude is a heavy, sulphur-rich oil. Indias sophisticated refineries are among the few that can process it efficiently into fuels such as diesel and jet fuel.

The renewed interest marks a partial return to an earlier relationship.

Before US sanctions halted imports in 2019, Venezuela had become one of Indias most important oil suppliers, rising to third place in 2012 and remaining among the top five thereafter. By 2019, it was shipping nearly 16 million tonnes of crude a year, helping push bilateral trade to $6.4bn, overwhelmingly driven by oil.

Yet Venezuela is unlikely to transform Indias energy mix, experts say.

Output has risen by roughly 400–500 kbd (thousand barrels per day) this year, but remains far below historic levels, limiting its ability to replace major suppliers.

Instead, Venezuelan barrels are best viewed as an attractive diversification option - providing Indian refiners with access to economical heavy crude while reducing reliance on any single supply region, said Ritola.

Whether Venezuela can become a bigger supplier will depend on production, sanctions and geopolitics.

But Delhi sees scope for a deeper energy relationship.

As the Indian government puts it in a statement, Venezuela has been an important partner in energy and investment, with Indian state-owned firms already holding significant stakes in the countrys oil sector and keen to explore opportunities for further enhancing their presence.