How U.S. Control of Venezuelan Oil Is Reshaping Asian Energy
Ukraine Cuts Gas Storage Rates To Encourage Domestic Buildup Ahead Of Winter Haley Zaremba is an energy journalist and researcher with more than a decade of professional experience covering global energy systems, land and natural resources, and… Asian nations are scrambling to find new oil and gas suppliers as the Iran war stretches on and negotiations over the Strait of Hormuz remain murky at best.
Asia, the primary purchaser of oil and gas supplies out of the Gulf, has beenhit hardestby the sudden blockage of approximately one-fifth of the world's crude trade.
Energy prices are soaring throughout the region, and global oil reserves are running dangerously low.
As a result, Asian leaders are racing to establish new sources of energy, from accelerating home-grown clean energy infrastructure to forging new and surprising trading partners.
India, in particular, has been thrown into turmoil by the extended closure of the Strait of Hormuz.
The waterway has historically seen the passage of 40 percent of India's crude oil supplies.
Its overnight closure has therefore caused a major shock to the world's most populous nation, pushing energy prices and inflation to soar, the rupee to plummet, and investors to flee.
Indian governmentdatashows that foreign investors pulled over $20 billion out of Indian equities in the first four months of the year, and the country's currency has plummeted to a historic low against theUnited States dollar.
It is against this backdrop that India has greatly strengthened its trade relationship with Venezuela.
The South American nation is home to the biggest proven oil reserves in the world, but its export sector has collapsed over the last decade through a combination of gross mismanagement, economic and civic collapse, and broad sanctions driven by the United States and upheld by many of its political allies.
But in the last quarter, shipments of Venezuelan oil to India haverisen by about 50 percent, making Venezuela India's third-largest crude supplier behind Russia and the United Arab Emirates.
The uptick in Venezuelan oil and gas exports is only partially due to increased demand driven by the United States and Israel's war in Iran.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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