2 million barrels deal: Indian Oil Corp, HPCL purchase Venezuelan Merey crude for April – BusinessToday – Company Technique & Outlook

India’s state-run refiners have turned to Venezuela for contemporary crude provides as they recalibrate sourcing methods. Indian Oil Corp and Hindustan Petroleum Corp have collectively bought 2 million barrels of Merey crude for supply within the second half of April, based on two commerce sources accustomed to the transaction.

The cargo shall be shipped on a single very massive crude provider (VLCC), with IOC lifting round 1.5 million barrels and HPCL taking about 500,000 barrels. The cargo is scheduled to reach on India’s east coast. The vendor is commodity dealer Trafigura, the sources stated.

The deal indicators a broader effort by Indian refiners to diversify crude imports as they scale back reliance on Russian provides, a transfer seen as supportive of New Delhi’s efforts to advance a commerce pact with Washington.

For HPCL, this marks its first buy of Venezuelan crude. IOC, the nation’s largest refiner, had beforehand processed Venezuelan oil in 2024, based on knowledge compiled by Reuters. Indian corporations usually don’t touch upon spot tenders as a consequence of confidentiality agreements. Trafigura declined to remark.

In January, HPCL had indicated it was looking for Venezuelan crude for its 300,000 barrels-per-day refinery in Visakhapatnam, Andhra Pradesh, which was just lately upgraded to deal with heavier grades. IOC earlier processed Merey crude at its Paradip refinery in Odisha.

The Merey cargo is priced in opposition to the Dubai benchmark and displays charges just like these at which Reliance Industries acquired Venezuelan oil from dealer Vitol, one of many sources stated. Reliance, which operates the world’s largest refining complicated, purchased 2 million barrels of Venezuelan crude for April supply at a reduction of roughly $6.50–$7 per barrel to ICE Brent, sources beforehand informed Reuters.

Vitol and Trafigura had been granted U.S. licences to promote Venezuelan oil following final month’s U.S. navy operation to seize President Nicolas Maduro.

Merchants and transport knowledge point out that U.S. Gulf Coast refiners are struggling to soak up a fast rise in Venezuelan shipments, leaving some volumes accessible available in the market.

The acquisition additionally comes because the U.S. and India transfer nearer to concluding a commerce pact. The 2 sides just lately introduced a framework geared toward decreasing tariffs and strengthening financial ties, with a goal to finalise the settlement by March.

Whereas the joint assertion on the commerce framework didn’t particularly point out Russian oil, U.S. President Donald Trump rescinded 25% tariffs on Indian items that had been imposed over Russian oil purchases, stating that New Delhi had “dedicated to cease instantly or not directly” importing Russian oil.

(With inputs from Reuters)