India's Oil Imports from Venezuela Hit Lowest in over 5 Years

By Nidhi Verma
Tuesday, March 13, 2018
Indian imports of oil from Venezuela have fallen to their lowest levels in over half a decade, shipping and industry data showed, as a severe economic and political crisis hits crude output in the South American OPEC member.
India's oil imports from Venezuela averaged around 300,000 barrels per day (bpd) between November, 2017 and February, 2018, a drop of about 20 percent from the same period a year earlier and the lowest such level since 2012, according to data from shipping sources and industry.
The sources declined to be identified as they were not authorised to speak with media.
Venezuela's oil production plunged to the lowest in decades last year, with the country racked by quadruple-digit inflation, a lack of hard currency and a crippling recession.
The five-year average of Venezuelan crude oil to India is around 440,000 bpd, the shipping and industry data showed.
India's oil supplies continue to be dominated by Middle East members from the Organization of Petroleum Exporting Countries (OPEC), with Iraq and Saudi Arabia prominent.
Key for Venezuela's drop-off in shipments to India are supply obligations to other countries which, amid its overall declining output, leave fewer cargoes available for sale elsewhere.
"Venezuela is obliged to supply barrels to China and Russia to pay back debts, so not too much is left for others, mainly India," said Ehsan Ul-Haq, director of crude oil and refined products at consultancy Resource Economist.
The sharp Venezuelan declines to India mark a turn-around of a previous trend.
Venezuelan oil shipments to India surged from May, 2012, when supplies from Iran hit insurance and banking hurdles caused by western sanctions against Tehran's nuclear programme.
However, New Delhi boosted purchases from Tehran after the lifting of sanctions in 2016, while a destructive cocktail of insufficient investments, payment delays to suppliers, potential U.S. sanctions and a brain drain have hammered Venezuela's oil industry.
"Why should India buy oil from a country which is too far (away)?... Plenty of oil is easily available from nearby nations like Iraq and Iran," said Haq.
 
(Reporting by Nidhi Verma; Editing by Joseph Radford and Henning Gloystein)
Categories: Tankers Energy

Related Stories

Cairn India Might Invest in US Oil Servicing Firms to Increase Production

Malaysia's Petronas Plans Job Cuts

US Operator Finds Oil Offshore Vietnam

Europe's Gas Uncertainty Help Drive Asian LNG Spot Prices Higher

Sunda Energy Closing in on Jack-Up Deal for Chuditch-2 Appraisal Well

TVO Selects Collins to Head Australian Ops

Yinson and PetroVietnam JV Get FSO Contract for Vietnamese Field

Velesto’s Drilling Rigs Up for Automatization Overhaul Under New Tech Alliance

TotalEnergies and Oil India to Jointly Tackle Methane Emissions Issues

Seatrium Delivers Fifth Jack-Up to Borr Drilling

Current News

Argentina YPF to Shed Offshore Exploration Projects

Cairn India Might Invest in US Oil Servicing Firms to Increase Production

All Gas from Conrad’s Mako Field to be Sold to Indonesia’s PLN

ORE Catapult and Japan’s FLOWRA to Jointly Advance Floating Wind

Shell Hires Noble’s Drillship for Work in Southeast Asia

Second Hai Long Substation Heads to Project Site Offshore Taiwan

Shell Launches Next Phase of Malaysia's Deepwater Project with First Oil Production

CNOOC Discovers ‘Vast Exploration Prospects’ in China’s Beibu Gulf Basin

China Unveils Plans for New Offshore Wind Farms to Tackle Carbon Emissions

Japan and South Korea Look to Partner Up with US for Alaska Pipeline

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com