Shares of Reliance Industries touched an all-time high on Monday, January 5, as optimism around crude sourcing and refining margins supported the stock in early trade.
Reliance Industries is estimated to import around 2 million barrels per month from Venezuela, positioning the company as a key beneficiary of any easing in sanctions and supply normalisation from the Latin American nation. Venezuela primarily exports heavy and sour crude, which is well-suited to Reliance’s Jamnagar refinery complex, the world’s largest refining hub. Access to cheaper heavy crude improves gross refining margins, especially amid a global crude surplus and volatile geopolitics.
Market participants see this crude mix advantage as supportive for Reliance’s refining profitability, particularly as alternative heavy crude sources remain constrained or priced at a premium.
Russian oil imports not fully discontinued
In a separate development, Reliance Industries has reduced but not completely exited Russian crude purchases. According to tanker-tracking data from Kpler, four tankers carrying Urals crude — three of which are under sanctions — are currently headed to the Jamnagar refinery. Kpler estimates that all four cargoes are expected to arrive next week.
Reliance told Bloomberg that it has no committed cargoes of Russian crude scheduled for delivery in January, even as shipment data suggests near-term arrivals. The company had earlier stated in October that it was reassessing its Russian crude intake following diplomatic pressure on India from the United States to scale back purchases in an effort to increase pressure on Moscow over the Ukraine conflict.
Energy shipping consultancy Poten & Partners has noted that Russian crude trade flows remain fluid, with buyers selectively adjusting volumes based on pricing, sanctions risk and geopolitical developments rather than exiting entirely.
Market view
Reliance’s ability to diversify crude sourcing between Venezuela, the Middle East and Russia continues to be viewed as a structural advantage. Cheaper feedstock, combined with complex refining capabilities, places the company in a strong position to protect margins despite geopolitical uncertainty and shifting sanctions regimes.
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