Trade sources reported that two Indian state refiners bought 2,000,000 barrels of Venezuelan oil from Vitol, for delivery in November. This is despite the fact that Venezuelan crude shipments continue to increase to what was previously Venezuela's second-largest oil market.

Indian refiners began importing Venezuelan crude in the first half of this year, after the U.S. Treasury Department approved transactions for crude and fuel exports despite sanctions aimed at President Nicolas Maduro’s government.

The sources who are directly involved in the matter confirmed that India's largest refiner, Indian Oil Corp. (IOC), will receive 1.2 millions barrels from Venezuelan oil. Mangalore Refinery and Petrochemicals Ltd. (MRPL) is expected to receive 800,000 barrels.

Emails seeking comment from Vitol, U.S. Treasury Department, Venezuelan State Oil Company PDVSA, IOC, and MRPL were not answered.

According to Kpler, the cargo of Venezuelan Merey 16, crude grade, is loaded onto the vessel Boston and shipped to MRPL.

While IOC's 300,000-barrels-per-day (bpd) Paradip refinery can process Venezuelan oil, MRPL has limited appetite for heavier grades such as Merey and has rarely bought oil from Venezuela.

Sources said that Reliance Industries Limited in India received authorization from the United States to resume oil imports from Venezuela. Reliance Industries Ltd's purchase of Venezuelan crude oil includes the swapping of heavy naphtha used by PDVSA joint ventures for dilution and exportable grades.

Kpler data show that Reliance received a cargo last month of Venezuelan crude oil on the vessel Degas.

Documents seen by revealed that PDVSA reported oil cargoes sold on the tankers Boston & Degas as being sold to intermediaries, and not final buyers.

Vitol's license was not clear. It is unclear if Vitol is reselling crude oil that it has purchased from another company.

A shipping source reported that PDVSA joint venture partners based primarily in Europe, with U.S. oil lifting licenses, had resold some of their cargoes. (Additional reporting from Timothy Gardner in Washington Editing done by Tony Munroe, Leslie Adler.)

(source: Reuters)