Defined: How Reliance Industries advantages from India‑US commerce deal and why the inventory went up 7%
India has not acquired a single cargo of Venezuelan crude since Might 2025 however Trump’s remarks have raised expectations of a resumption of commerce. In 2024 Indian refiners imported a mean of about 70,000 barrels per day from Venezuela with shipments exceeding 150,000 bpd in two months in keeping with Kpler delivery information.
“Venezuelan crudes are heavy and bitter and subsequently cheaper and could be of curiosity to Indian refiners lots of whom can course of most of these crudes,” mentioned Prashant Vasisht Senior Vice President and Co Group Head Company Rankings at ICRA Ltd. Reliance Industries’ refineries can course of the extraordinarily heavy and bitter crude positioning the conglomerate as a direct beneficiary of any Venezuelan oil resumption.
Minimal affect from Russian crude exit
Vasisht famous that for the Indian refining sector there are ample avenues together with the US to buy crude as Russian crude accounted for lower than 2% of Indian crude imports previous to FY2023.
Following Russia’s invasion of Ukraine in early 2022 discounted Russian crude flooded the Indian market. Venezuelan oil dropped out of India’s import basket final yr however Trump’s newest sign might pave the best way for its return as a significant provide supply.
Iranian barrels that after accounted for about 10% of India’s crude imports have been changed by provides from the US and different producers after 2019 demonstrating India’s means to swiftly reconfigure its crude sourcing technique. Whereas the Indian facet has not commented formally Trump mentioned Prime Minister Narendra Modi has agreed to cease shopping for Russian oil and to purchase rather more from america and probably Venezuela.The event performs instantly into Reliance Industries’ refining capabilities and value construction. RIL shares have been below stress amid uncertainty round Russian and Venezuela imports and are nonetheless down round 8% this calendar yr to this point. Its Q3 outcomes which have been additionally impacted by decrease than anticipated efficiency within the retail enterprise amid a slowdown in discretionary shopper spending provided traders little to chew on.
(Disclaimer: Suggestions, options, views, and opinions given by consultants are their very own. These don’t symbolize the views of The Financial Instances)
