Indian Oil Corp and Hindustan Petroleum, two of India's largest oil refiners, have recently resumed purchasing Venezuelan crude oil, marking a significant shift in their trading activities following a pause. Together, they acquired a shipment of 2 million barrels of Merey crude, indicating a renewed interest in Venezuelan oil, which has faced international sanctions and challenges. This move follows a similar purchase by Reliance Industries Ltd, showcasing a trend among Indian refiners to diversify their crude oil sources amidst fluctuating global oil markets.

The new oil shipment is set to be delivered to Indian Oil's Paradip refinery and Hindustan Petroleum's Visakhapatnam facility, suggesting a strategic bolstering of their refining capabilities. The background of this trade stems from past U.S. sanctions that targeted Venezuela's oil industry, forcing major players to navigate complex international trade relations. The involvement of Indian companies highlights their adaptability to changing geopolitical landscapes in pursuit of energy security and economic viability.

Historically, Indian refiners have benefitted from purchasing Venezuelan crude when prices are low, making it an attractive option for companies like Reliance and Indian Oil. As the global oil market recovers, this could signify the gradual normalization of trade with Venezuela for Indian companies, raising questions about the implications for future U.S. sanctions and the broader geopolitical dynamics in the energy sector.