Reduced purchases in ChinaVenezuelan oilIndia, for its part, has stepped up its purchases of Venezuela. China as the largest in VenezuelaOilOne of the importing countries that has long been a major in VenezuelaEnergyCollaborators. However, with the lifting of the US on VenezuelaEnergySanctions, GlobalEnergyThe company began to recover on the countryEnergyof the purchase, resulting in Venezuela domesticEnergyThe market was swift, and the Chinese side and the seller failed to reach an agreement. As a result, China's independent refiners have chosen to wait and see, pausing or postponing new procurement plans. Some refiners have even said that ifEnergyStill expensive, they will turn to countries like Iran, Iraq to reduce costs. Against this backdrop, India took the opportunity to reduce purchases from ChinaVenezuelan oilof alternative buyers, indicating that they are buying through an intermediaryVenezuelan oil, and arrange talks, **buy directly from Venezuela**, as well as import fuel, etc.
At the same time, India is infamous for its relationship with RussiaEnergyThere has been friction on the trade and the search for others has begunEnergyPartners. India previously imported from RussiaEnergybut the two countries disagreed after they stopped using their own currencies for transactions. Modi** is reluctant to use the renminbi as a deluctanceEnergySettlementCurrency, the Russian side asked India to use the yuan to do soEnergyTrade. Therefore, in order to circumvent the problem, India looks for alternativesEnergy** Country, Venezuela was chosen.
Although India chose to buy from VenezuelaOil, but the problems faced by India and China are similar. In a volatile situation, Indian buyers are reluctant to sign long-term contracts, while Venezuela struggles to accept low prices. In addition, Venezuela exportsOilMainly heavy oil, with a high sulfur content, complex processing processes, and high transportation costs, it is not cost-effective compared to buying from Russia. In addition, some oil companies are reluctant to provide services to Venezuela due to US sanctions, so if India wants to trade with Venezuela, it will have to charter tankers willing to load and unload in the country's ports, and the quality of these tankers may be questionable. In addition, inadequate port facilities and maintenance in Venezuela often lead to inefficient loading and unloading, increasing transaction uncertainty and costs, and impacting profit margins for Indian importers.
In addition, the United States against VenezuelaEnergyThe lifting of departmental sanctions is only a temporary measure, valid for six months, with political conditions attached. If Venezuela does not meet the U.S. demands, the U.S. risks reinstating sanctions, putting India in an awkward position. In addition, India wants to useRupeeConductedEnergytransactions, but in the past the economic sanctions imposed by the United States on Venezuela have restricted the country from using the US dollar to carry outInternationalTrade. Despite the fact that the US side has lifted sanctions at the moment, the gap between the two countries remains, so Venezuela asks for an advance payment, useRupeeSettlement is less likely.
India is subject to frequent changesEnergyThe behavior of the partners shows a tendency to put profit first. However, such short-sighted behavior is not conducive to building long-term stable cooperative relations, and may ultimately harm India's own interests. The reason for this behavior in India is mainly the pursuit of economic interests andEnergySafe. However, it is important to recognize that in:EnergyIn the market, stable cooperative relations and reliable channels are more important. Frequent changes of partners will only lead to instability**, increasing transaction risk and costs. In addition, India is forCurrencyThe settlement problem also faces certain difficulties. If India wishes to take advantageRupeeConductedEnergyA deal, which requires consensus with Venezuela as well as other countries, may not be easy to achieve.
To sum up, India chose to buy from VenezuelaOilThere are some challenges and risks. While India is trying to fill the Chinese purchase cutsVenezuelan oilbut due to factors such as instability, quality problems, and high transportation costsVenezuelan oilNot necessarily a better choice for India. In addition, the sanctions policy of the United StatesCurrencySettlement issues have also increased the risk of transactions between India and Venezuela. Therefore, India should think more rationally about its long-term interests and look for more stable and reliable onesEnergypartners to ensure themselvesEnergySafe.