New Delhi. Discussions in the oil market have become heated since America attacked Venezuela and detained its President Nicolas Maduro and his wife. Debate broke out on crude oil. There is discussion on who will benefit and who will suffer loss if America takes control of Venezuelan oil.
The latest developments are also important from India's point of view. Because due to Trump tariffs, India has reduced oil imports from Russia. In such a situation, US seizure of Venezuelan oil may open another door for it. Let us know how.
Different countries have different opinions regarding American action. Some are calling this step of America right and some are calling it wrong. India also gave its statement on this.
After reading India's statement, it can be inferred that India has given a careful statement keeping in mind its interests. Amidst the rhetoric and discussions, there is also a discussion going on that Mukesh Ambani of Venezuela may directly benefit. But let us know how.
They will suffer losses if America takes over Venezuelan oil.
If America captures Venezuela's oil resources, Russia, Canada, Saudi Arabia and the European Union will suffer losses. Russia is dependent on earnings from oil and energy. It is the second largest exporter of crude oil. Its oil is sold in European and Asian markets. Flooding of Venezuelan oil into global markets could put downward pressure on prices and reduce Russia's market share and pricing power.
Saudi Arabia, the Organization of Petroleum Exporting Countries (OPEC)'s largest producer, may face strategic challenges if Venezuelan oil comes back to the global market strongly.
If Venezuelan crude again gains preferential access to the US market, Canada could suffer a major loss.
According to AFPM, Canada is the largest supplier of oil to the US, supplying about 60 percent of US crude oil imports last year. Most of this supply comes from the oil sands of Alberta and is shipped south to refineries in the Midwest and along the Gulf Coast.
Why will Mukesh Ambani's Reliance benefit?
If Venezuelan crude oil makes a comeback in the Indian market, Mukesh Ambani's Reliance Industries will directly benefit from it. According to commodity market analytics firm Kpler, Venezuelan crude oil is mostly heavy to very heavy. It contains high amount of sulphur. Refining this oil requires high technology which is available to Reliance Industries and Nayara in India.
Reliance's Jamnagar complex has been designed to refine high sulfur crude oil. If the supply of crude oil from Venezuela to India resumes, Reliance may increase purchases. And Reliance can earn big money by refining oil.
Prashant Vashishtha, senior vice president and co-group head, corporate ratings, ICRA, said Venezuelan crude is heavy and sour, so it is cheap. Indian companies have invested in Venezuelan oil and gas blocks, but dividend payments and development have been held up due to sanctions. If America lifts the ban, Indian companies can get huge dividends from it.
Reliance was once the biggest buyer
According to Kpler data, Indian crude oil imports from Venezuela were strong between 2013 and 2016, increasing from about 400 kbd to about 500 kbd. During this period, Reliance's Jamnagar Refinery was the largest buyer, followed by Nayara's Vadinar Refinery (then Essar Oil), while New Mangalore Refinery imported lesser quantities.
Imports began to decline after 2017, reaching about 540 kbd in 2018, and dropped to zero by 2021 after US sanctions were imposed.
In October 2023, the US eased sanctions on Venezuela's petroleum sector and allowed oil purchases for 6 months. Due to this, RIL and some other Indian refineries resumed oil imports from Venezuela. However, the US did not pursue the waiver due to the rigging of free and fair presidential elections in Venezuela.
After this, in 2025, Trump threatened to impose higher tariffs on buying oil from Venezuela. There has been no oil import from Venezuela into India for several months.