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Crisil: Venezuela Turmoil Unlikely to Dent India or Move Oil Prices Near Term

Minimal bilateral ties mean limited near-term fallout for India.

Overview

  • Crisil Ratings said the recent Venezuela developments are not expected to materially affect India’s trade or the credit quality of Indian companies.
  • With Venezuela supplying about 1.5% of global crude, any disruption there is unlikely to cause sustained turbulence in oil prices.
  • Brent crude has stayed largely steady in recent days, hovering just above $60 a barrel.
  • India’s exposure is small, with Venezuelan imports under 0.25% of total imports and roughly 1% of India’s crude needs in FY2025, mostly crude and allied products worth about Rs 14,000 crore.
  • Crisil noted that investment to revive Venezuela’s vast reserves could lift global supply and soften prices over time, and it will continue to monitor the situation.