Venezuela Ships Massive 2-Million-Barrel Oil Cargoes To India As Trade Rebounds

New Delhi: Venezuela has once again started sending crude oil to India on a large scale. The special thing is that this time instead of small ships, the world's largest oil tankers are being used. Up to 20 lakh barrels of oil can be brought in these huge ships at one time. This clearly indicates that oil trade between the two countries is resuming rapidly.

Why are such big tankers suddenly being sent to India?

Recently, an agreement has been signed between Venezuela and America regarding oil supply, after which many restrictions on Venezuelan oil exports have been relieved. Its effect is now clearly visible.

Oil companies and trading firms have started chartering very large crude carrier ships so that large quantities of oil can be shipped directly to India. This will not only increase the supply of oil but will also reduce shipping costs.

What will be the benefit of using these big tankers?

VLCC i.e. Very Large Crude Carrier is counted among the largest oil ships in the world. These ships can carry many times more oil than normal tankers. Its direct advantage is that more oil can be delivered in fewer trips. This will reduce transportation costs and speed up supply. This will help in quickly emptying the oil stored in Venezuela's storage.

Why is Venezuelan oil so important for India?

India was earlier a major customer of Venezuela. But in 2019, after the sanctions imposed by the US, India had to stop buying oil from Venezuela. Now that the sanctions have been eased, India is again turning to Venezuela.

Indian refineries like Venezuelan heavy crude because it is often cheaper. This helps India to meet its oil needs and also reduces dependence on other countries.

Which Indian companies are buying oil from Venezuela?

Reliance Industries has recently purchased Venezuelan oil, which has happened after many years. Apart from this, companies like Indian Oil, Bharat Petroleum and HPCL Mittal Energy are also showing interest in buying oil from Venezuela. The objective of these companies is to diversify their supply sources so that there is not much dependence on any one country.

Can India become a big buyer for Venezuela?

Venezuelan oil production has increased in recent months, but large amounts of oil are still in storage. In such a situation, big buyers like India can help Venezuela by buying this oil. If this trade continues like this, India can again become a major customer for Venezuela in the coming times.