RELIANCE AND ONGC STAND TO BENEFIT FROM US TAKEOVER OF VENEZUELA OIL

Venezuela holds about 18% of the world’s proven oil reserves but currently contributes less than 1% to global crude supply, with output below 1 million barrels per day. As a result, the latest geopolitical churn around a potential US takeover of Venezuelan oil assets is unlikely to materially alter crude prices in the near term, even if trade flows change. In India, Reliance Industries and

stand to benefit from US takeover and restructuring of Venezuela’s oil industry, as both companies can get adequate supplies if sanctions on Venezuela are lifted. Both these companies are importers of crude oil however they were not able to import adequate quantities from Venezuela due to US sanctions.