Venezuela Becomes India's 3rd Largest Oil Supplier Due to Competitive Pricing

India's external crude oil procurement landscape is shifting. Due to energy supply shortages caused by Middle East conflicts and the relatively lower price of Venezuelan crude, Venezuela has become India's third-largest oil supplier in May. The ongoing conflict involving the U.S., Israel, and Iran has led to the blockade of the Strait of Hormuz, preventing 20% of global oil and gas exports and driving up global prices. Amidst this volatility, Indian oil companies have shifted to purchasing large quantities of crude from Venezuela. According to shipping tracker Kpler, India has imported an average of 417,000 barrels per day from Venezuela in May, up from 283,000 barrels in April. India Today reported that while India previously imported almost no oil from Venezuela, a strategic pivot has made its procurement volume exceed that of traditional sources like Saudi Arabia and the U.S. By May, Venezuela became the third-largest supplier, trailing only Russia and the UAE. Kpler data shows India's total oil imports in May rose 8% from the previous month to about 4.9 million barrels per day, still below the pre-conflict level of 5.2 million. The blockade has severely impacted Middle Eastern exports; for instance, daily imports from Iraq dropped from 969,000 barrels before the conflict to just 51,000 in May. With Middle Eastern supply shrinking, the relatively cheaper Venezuelan oil has provided relief to Indian oil companies facing domestic price hikes.