Since the introduction of sanctions by the US president Trump, Oil export by Venezuela to India has skyrocketed and reached to 620,000 barrels per day, 66% higher then the earlier exports before imposition of sanctions.
With this, India becomes the leading importer of crude oil from Latin American country battling with Coup, hyper inflation and cash-crunch. India now imports about 55% of Venezuela’s total Oil exports. Indian refiners Reliance Industries and Nayara Energy, which is backed by Rosneft Oil Company are driving the boost.
Even after this huge surge in imports to India, the overall oil exports came down by 9.2% in February compared to the previous month. This will have a major impact on country’s financial condition as most of its revenue is from Oil export business. Venezuela is already battling with financial crises from a couple of years and now such a heavy plunge in oil exports will only add fuel to the fire.
Since January 28, the day sanctions were announced, the oil export to US has come to a standstill as state-owned Petroleos de Venezuela SA demands upfront payment for the cargoes.
US President Donald Trump has been backing for the dethroning of the Venezuela’s President Mr. Nicolas Maduro and recently after a controversial Coup by the opposition leader Juan Guaido, US recognized Guaido as the interim president of the Venezuela and has asked for the new elections to democratically choose the new president as soon as possible.
The on going tussle between Mr. Maduro and the opposition leader Guaido will surely cast a heavy toll on the politically and economically unstable Latin nation but this has come like a blessing in disguise for Indian oil industries and various private refiners like Reliance Industries Limited(RIL) and Nayara Energy.