India’s top private refiner Reliance Industries Limited (RIL) is currently loading Venezuelan crude under a swap arrangement for diesel that is allowed under US sanctions. Tanker tracker data showed that Commodore, a VLCC operated by Greece-based NGM Energy, is currently loading Venezuelan crude at PDVSA’s Jose terminal.
It remains unclear when RIL will deliver diesel cargoes to Venezuela to finalize the swap. RIL was a regular importer of Venezuela’s Merey crude to be processed at its refining network in India, but the import was tapered by the end of 2019 under US pressure.
The latest swap may indicate that RIL has revived its trade with PDVSA, but it will likely depend on the evolution of US government policy. Washington allows crude-for-diesel exchange to facilitate food distribution, agricultural activity, and power generation in the South American country.
However, the recent shipments of Iranian fuel to Venezuela sparked an increasing US attention on the relationships between the two of its adversaries. President Donald Trump’s administration previously said that it is determined to disrupt the shipments.
