Can Venezuelan oil save India amid the Hormuz energy crisis?
With Gulf flows constrained, India has increased imports from Venezuela, which now ranks as its third-largest crude supplier this month
India's growing reliance on Venezuelan crude comes as the closure of the Strait of Hormuz disrupts a major corridor for its oil imports, forcing a rapid shift in supply chains and energy diplomacy.
What is driving the crisis?
The escalation of conflict involving Iran has led to the closure of the Strait of Hormuz, a key maritime route through which nearly half of India's crude oil imports typically pass. A US naval blockade of Iranian ports has also halted Iranian shipments to India this month. Reports Al Jazeera.
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At the same time, supply from other Gulf partners has tightened. Imports from Saudi Arabia have fallen sharply from about 670,000 barrels per day in April to roughly 340,000 barrels per day in May. Indian officials have also raised concerns about maritime security after multiple incidents involving India-linked vessels, including one ship that sank following a suspected attack.
Why is India turning to Venezuela?
With Gulf flows constrained, India has increased imports from Venezuela, which now ranks as its third-largest crude supplier this month.
Shipments have risen by nearly 50% from April to around 417,000 barrels per day in May, after a nine-month period with no exports to India.
The country holds the world's largest oil reserves, estimated at 303 billion barrels, and about 17% of global totals. Its re-emergence as a supplier is also linked to shifts in US policy following the removal of former President Nicolas Maduro by US forces in January 2026, which led Washington to push Venezuelan crude into global markets.
What role is the United States playing?
The United States is actively shaping this realignment. US Secretary of State Marco Rubio is visiting India from (23–26 May) to discuss energy security and trade, with Washington signalling it wants to sell India "as much energy as they'll buy".
At the same time, the US is encouraging Venezuelan exports to reduce Iran's leverage in negotiations and to push diversification away from Russian oil.
Venezuelan Acting President Delcy Rodriguez is also expected in India next week to discuss future oil sales.
Can Venezuelan crude replace Gulf supply?
Venezuela's crude is ultra-heavy and sulphur-rich, making it harder to process in many refineries. However, it is considered well suited for Reliance Industries' Jamnagar refinery in Gujarat, one of the few global facilities designed to handle such grades efficiently.
This compatibility gives India a limited but important alternative supply option as Gulf flows remain disrupted.
However, the scale of Venezuela's current exports to India—around 417,000 barrels per day—remains well below the combined volumes historically sourced from Gulf suppliers, particularly during normal Strait of Hormuz operations.
What does this shift mean globally?
The US-backed reopening of Venezuelan oil flows is also seen as part of a broader effort to reshape global energy supply chains. The strategy aims to reintegrate Venezuela's oil sector—home to the world's largest reserves—into global markets while reducing leverage held by Iran and Russia.
US companies including Chevron currently produce about 250,000 barrels per day in Venezuela, while ExxonMobil is reportedly seeking to re-enter the country after nearly two decades.
Venezuelan oil is helping India offset some immediate supply disruptions from the Gulf, but it does not fully replace the scale or strategic importance of routes affected by the Hormuz closure.
The shift instead reflects a broader reordering of energy flows, where Venezuela is becoming a temporary pressure valve in a system still heavily exposed to geopolitical risks in the Middle East.
