2 million barrels deal: Indian Oil Corp, HPCL buy Venezuelan Merey crude for April – BusinessToday

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, in line with two commerce sources accustomed to the transaction.

The cargo will probably 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 mentioned.

The deal indicators a broader effort by Indian refiners to diversify crude imports as they cut 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, in line with knowledge compiled by Reuters. Indian corporations usually don’t touch upon spot tenders on account of confidentiality agreements. Trafigura declined to remark.

In January, HPCL had indicated it was in search of Venezuelan crude for its 300,000 barrels-per-day refinery in Visakhapatnam, Andhra Pradesh, which was not too long ago upgraded to deal with heavier grades. IOC earlier processed Merey crude at its Paradip refinery in Odisha.

The Merey cargo is priced towards the Dubai benchmark and displays charges much like these at which Reliance Industries acquired Venezuelan oil from dealer Vitol, one of many sources mentioned. 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 instructed 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 delivery knowledge point out that U.S. Gulf Coast refiners are struggling to soak up a speedy rise in Venezuelan shipments, leaving some volumes out there out there.

The acquisition additionally comes because the U.S. and India transfer nearer to concluding a commerce pact. The 2 sides not too long ago introduced a framework aimed 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 immediately or not directly” importing Russian oil.

(With inputs from Reuters)