Breaking Update: Here’s a clear explanation of the latest developments related to Breaking News:India’s Reliance would consider buying Venezuelan oil if allowed– What Just Happened and why it matters right now.
Item 1 of 2 A guard walks past the Reliance Industries logo near the entrance of Dhirubhai Ambani Knowledge City in Navi Mumbai, March 15, 2024. REUTERS/Francis Mascarenhas/File Photo
“We await clarity on access for Venezuelan oil by non-U.S. buyers and will consider buying the oil in a compliant manner,” a spokesperson at Reliance Industries said in an emailed response to Reuters’ queries.
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The two companies did not immediately respond to Reuters’ requests for comment.
RELIANCE STOPPED BUYING VENEZUELAN OIL LAST YEAR
Reliance’s two refinery complexes in western Gujarat state, with a combined capacity of about 1.4 million barrels per day of crude oil, allow it to process cheaper and heavier crudes such as Venezuela’s Merey.
“If Venezuelan barrels re-enter global markets, they are likely to come at a discount, improving feedstock optionality and economics for compatible refiners, even if volumes remain limited,” said Sumit Ritola, lead research analyst, refining and modelling at Kpler.
AN ACCEPTABLE ALTERNATIVE TO RUSSIAN ENERGY?
Ritola said Venezuelan oil offered India a ‘politically acceptable diversification option’ to Russian oil.
India has faced pressure from Western nations to curb Russian oil purchases after Moscow’s invasion of Ukraine on concern oil revenue may be financing Russia’s war effort.
“We’ve already seen that Reliance has reduced its intake of Russian crude, which indicates refiners are willing and able to adapt when compliance or trade risks rise,” Ritola said.
Reporting by Nidhi Verma, Editing by Louise Heavens and Bernadette Baum
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