Venezuela is sending large volumes of crude oil to India again, with multiple supertankers heading towards Indian refineries, even as the United States steps up action against ships linked to the sanctioned trade.
The renewed flow signals a comeback for Venezuelan oil in India after years of disruption caused by US sanctions. Indian refiners, which had earlier reduced purchases, are now receiving cargoes through long-haul shipments routed via complex logistics networks. These cargoes are typically transported by very large crude carriers (VLCCs), allowing suppliers to move substantial volumes in a single voyage.
However, the trade faces growing scrutiny. In a recent enforcement move, US forces boarded a Venezuela-linked oil tanker in the Indian Ocean as part of Washington’s wider crackdown on what it calls illicit oil shipments. The operation reflects tighter monitoring of vessels suspected of helping Caracas bypass sanctions through opaque ownership structures, ship-to-ship transfers and disabled tracking systems.
The US has been targeting such networks since late 2025, warning that even international waters will not shield sanctioned cargoes from action. The move highlights the geopolitical risks surrounding the revived oil trade and could complicate logistics, insurance and payments for buyers.
For India, the return of Venezuelan crude offers an opportunity to diversify supplies and access heavier grades that are well-suited for complex refineries. It also helps processors optimise costs at a time of volatile global prices. But refiners remain cautious, as any tightening of enforcement could disrupt deliveries or raise compliance risks.
Venezuela, which holds some of the world’s largest oil reserves, has been trying to rebuild exports despite sanctions that have sharply curtailed its output and market access. India was once among its biggest customers, and the latest shipments suggest both sides are testing ways to restore that trade.
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