India Diversifies Oil Sources: IOC, HPCL Secure 2 Million Barrels from Venezuela

• Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Limited (HPCL) finalize deal to buy 2 million barrels of Merey heavy crude oil from Venezuela.
• The oil is expected to arrive at India's eastern coast port in April via a single VLCC vessel, with IOC taking 1.5 million barrels and HPCL 500,000 barrels.
• This purchase, facilitated by commodity trader Trafigura, marks HPCL's first Venezuelan crude oil deal, while IOC had previous purchases in 2024.
• The move is part of India's strategy to diversify its crude oil sources, reducing reliance on traditional suppliers like Russia and enhancing energy security.
• Global political shifts, including US government allowances for Venezuelan oil sales, have enabled such deals, benefiting India with potentially lower-priced heavy crude.