India pivots to Venezuelan oil as Middle East tensions disrupt supplies

India's crude oil sourcing strategy is shifting toward Latin America and Africa as geopolitical tensions in West Asia threaten traditional supply routes through the Strait of Hormuz. Ship-tracking data from Kpler shows Venezuelan crude imports surged to approximately 444,000 barrels per day in August, elevating the South American nation to India's fourth-largest supplier behind Russia, Saudi Arabia, and Iraq.

The sharp uptick in Venezuelan supplies marks a dramatic reversal after Indian refiners resumed purchases from the country in April following a period of sanctions-related disruptions. Alongside Venezuelan crude, Indian oil companies have increased acquisitions from Brazil and African producers, creating a more geographically dispersed import portfolio that insulates the world's third-largest oil consumer from concentrated regional risks.

Russia remains by far India's dominant crude supplier, with imports hovering near 2 million barrels per day in August and reaching as high as 2.6 million bpd during June-July—accounting for over half of total Indian crude consumption. However, the expansion into Venezuelan, Brazilian, and African supplies demonstrates India's determination to reduce exposure to Middle Eastern supply volatility while maintaining its reliance on Russian energy resources.

Industry analysts view the diversification as a prudent response to mounting uncertainties in the Persian Gulf. The strategy allows Indian refiners to balance geopolitical risk while capitalizing on available supplies from producers seeking market access, particularly Venezuela and Russia, both operating under international sanctions.