India’s access to discounted Venezuelan crude oil has tightened significantly as the delivered cost of the Merey grade surged to approximately $95 per barrel, industry sources revealed on Friday. The developments come at a challenging time for the world’s third-largest oil consumer.
The shrinking discounts combined with elevated freight costs have eroded the price advantage that Venezuelan crude once offered. Meanwhile, Russian crude — another key alternative source for Indian refiners — has flipped from trading at a discount to commanding a premium over the Dated Brent benchmark.
The shifting dynamics in global crude markets reflect broader geopolitical tensions and supply chain disruptions. Indian refiners, who have aggressively diversified their crude sourcing in recent years, now face a tougher procurement environment that could impact the country’s overall energy import bill.
