Venezuela's Oil Beckons India Amid Hormuz Energy Crisis

The Shift in India's Oil Imports

Venezuela has emerged as India’s third-largest crude oil supplier this month, as the war on Iran and the closure of the Strait of Hormuz force countries to scramble for alternative energy sources.

Shipments from Venezuela to India are nearly 50 percent higher than they were in April, according to energy tracking data.

The Impact of the Strait of Hormuz Crisis

Nearly half of India’s crude oil imports are normally shipped from Gulf producers through the Strait of Hormuz, along with large volumes of liquefied natural gas and petroleum gas.

But the narrow Gulf shipping route has become inaccessible as the conflict around Iran intensifies.

The Data Analysis

• Venezuela has supplied India with about 417,000bpd so far this month, up from 283,000bpd in April.
• India's total crude imports have risen this month to about 4.9 million bpd amid the global oil supply crisis.

The Impact Analysis

Analysts say Washington is attempting to reshape global energy supply chains – reducing Iran’s leverage in any peace talks – while simultaneously tightening its grip over Venezuela’s oil sector.

Critics say Washington’s campaign against Maduro was never simply about democracy or human rights, but about restoring US influence over one of the world’s largest oil reserves and replacing Iranian crude with Venezuelan supplies – opening the door to a conflict with Tehran.

The Prediction

Experts say the parallel visits by Rubio and Rodriguez to India demonstrate how energy diplomacy is increasingly being shaped by the geopolitical fallout from the wars involving Iran and Venezuela.

Rodriguez and Rubio will now be hoping to secure a deal that could pave the way for this surge in oil exports to continue.