Days after the US temporarily relaxed sanctions on OPEC member Venezuela’s oil industry, Oil Minister Hardeep Singh Puri stated on Wednesday that Indian refiners could process Venezuelan oil and that the country might purchase it if it was reasonably priced.
India, the third-largest oil user and importer in the world, imports more than 80% of the crude oil it uses and is looking to reduce its import costs.
“It is always good when more supplies come to market,” Speaking on Venezuelan oil at an industry gathering, Oil Minister Hardeep Singh Puri continued, saying: “We will buy from wherever we can get cheaper oil.”
According to Mr. Puri, Venezuela possesses some of the world’s greatest oil reserves, and its massive output will have a moderating influence on world oil prices. Since 2019, the nation in South America has been subject to severe sanctions. Two weeks ago, the US dropped these in large part in reaction to an agreement made between the opposition groups and the Venezuelan government over the 2024 election.
For the next six months, Venezuela is free to produce and sell oil to the markets of its choice according to a new general licence granted by the US Treasury Department. According to Mr. Puri, Indian Oil Corp. and Reliance Industries had previously purchased Venezuelan oil.
