Venezuela and Brazil gain market share in Asia as refiners hedge against supply risks.

Petroleumworld/EnergiesNet

SAN DIEGO
EnergiesNet.com 08 14 2026

As global refining dynamics adjust to Middle Eastern supply tensions and shifting sanctions risks, South American crudes are securing a significantly larger footprint in Asia, led by expanding shipments from Venezuela and Brazil to India, the world’s third-largest oil importer.

According to reporting and trade source data cited by Reuters’ Nidhi Verma, Latin America’s share of India’s total crude oil import basket expanded sharply from 3.5% to 12.7% during the April–July period. Verma reports that this growth was driven primarily by an influx of crude shipments from Venezuela and Brazil.

Production Momentum in South America

The Latin American commercial surge in Asian markets is backed by solid domestic production performance across both major South American producers:

• Venezuela: According to official secondary source tracking cited in OPEC Monthly Oil Market Reports, Venezuelan crude oil output stabilized past 1.07 million to 1.10 million barrels per day (bpd), maintaining a steady recovery trajectory.

• Brazil: Government and industry figures show Brazilian crude production reached record highs of 4.5 million bpd in mid-2026, driven by offshore pre-salt deepwater operations.

Indian refiners, operating advanced complex facilities optimized for heavy Venezuelan grades (such as Merey) as well as medium-sweet Brazilian grades (such as Lula/Tupi), have increasingly integrated these South American barrels into their processing slates.

Market Opportunities Driven by Geopolitical Friction

The rising intake of Venezuelan and Brazilian crude coincides with major realignments across India’s traditional supply corridors, as detailed in Verma’s report:

• Middle Eastern Supply Compression: According to Verma, Middle Eastern exporters saw their combined share of the Indian crude market decline from 43% down to roughly 30% over the April–July timeframe due to regional shipping disruptions.

• Looming Sanctions Risk on Russian Imports: While Russia remained India’s primary supplier—accounting for a record 50.83% of imports (2.47 million bpd) in July, as reported by Verma—Indian refiners face rising trade uncertainty following U.S. Senate legislation proposing 100% tariffs on buyers of Russian crude.

As Indian refiners seek commercial alternatives to guard against Middle Eastern geopolitical friction and potential tariff risks on Russian barrels, South American suppliers—led by Venezuela and Brazil—are emerging as crucial pillars of supply security for Asia’s refining sector.

EO

EnergiesNet-Petroleumworld 08 14 2026