RIL eyes Venezuelan crude comeback—here's what's up
Reliance Industries Ltd (RIL) has indicated it would consider buying Venezuelan oil again, but it needs a green light from the US to do so.
With its massive Gujarat refineries built for heavy crude like Venezuela's, this could impact India's oil sourcing strategy.
Why does this matter?
If RIL gets access to discounted Venezuelan crude, it could improve refining margins and economics—not just for itself but also for rivals like Indian Oil and Hindustan Petroleum.
Plus, with Reliance stepping back from Russian oil due to Ukraine-related risks, the need to diversify suppliers has increased.
What changed recently?
The US and Venezuela just struck a deal allowing 30-50 million barrels of Venezuelan oil into America—a big step after years of sanctions.
RIL stopped buying in early 2025 after steep US tariffs kicked in; now it's waiting on clear rules before jumping back in.
The bigger picture: India diversifies its oil sources
India has told the US that opening up Venezuelan and Iranian oil would help reduce its reliance on Russian imports without sending prices soaring.
It's all about keeping options open as global politics keep shifting.