New Delhi, Dec 2 (KNN) India is set to resume its oil import from Venezuela after three years as the United States (US) has now eased sanctions on the Latin American country. 

Private sector giant Reliance Industries Ltd (RIL) has booked three tankers scheduled to load oil from the Latin American country in December and January 2024, as per shipping fixtures shared by trade sources.

Private sector refiners RIL and Nayara Energy (NEL) were regular buyers of Venezuelan crude prior to imposition of US sanctions on Caracas in 2019. Following the sanctions, oil imports from Venezuela stopped.

According to data from commodity market analytics firm Kpler, India last imported Venezuelan crude in November 2020. 

India was Venezuela fifth-largest supplier of oil in 2019, providing close to 16 million tonnes of crude to Indian refiners, as per India’s official trade data.

In October this year, Washington eased sanctions on Venezuela’s oil sector, authorising oil exports without limitation for six months. Venezuela, a member of the Organisation of the Petroleum Exporting Countries (OPEC) has the largest proven oil reserves in the world.

It has reportedly been offering steep discounts to Chinese independent refiners, who have been its biggest buyers of oil through the sanctions. However, recent reports suggest the discounts have narrowed considerably in recent weeks due to the easing of sanctions and other buyers now willing to pick up Venezuelan oil. Caracas appears eager to sell its crude in other major markets and is likely offering discounts to willing buyers.

(KNN Bureau)