Reliance pauses buying of Venezuelan oil after Trump authorises 25% tariff

By Rakesh Sharma and PR Sanjai

 

Reliance Industries Ltd. has paused further purchases of Venezuelan crude after US President Donald Trump authorised a 25 per cent tariff on countries buying the South American country’s oil.

 

India’s largest privately owned refiner is expected to take delivery of a cargo of Merey crude that’s currently en route from Venezuela, but additional buying has been put on hold, according to people familiar with the situation, who asked not to be identified because the matter is sensitive.

 

Reliance secured waivers from the US last year to resume importing crude from Venezuela, and Kpler estimates the refiner has taken 6.5 million barrels since the start of the year. Trump’s executive order on Monday, however, will target any nation taking Venezuelan oil with “secondary” tariffs, with effect from April 2.

 

 

A Reliance spokesman didn’t immediately reply to messages seeking comment.

 

Other Indian refiners at times last year purchased Venezuelan oil from traders rather than the nation directly, but cheap and more accessible Russian crude has long been a more attractive source of supply. Reliance also buys Russian oil.

 

China has been the single largest buyer of Venezuela’s crude, taking more than 40 per cent of its oil exports in February. The nation’s private refiners, which process most of the crude, may temporarily pause purchases as scrutiny increases but the flow of sanctioned oil is unlikely to stop.