India refiner Reliance Industries buys Canadian heavy crude to offset Venezuelan decline: Sources

WINNIPEG, MANITOBA/NEW DELHI: Indian oil refiner Reliance Industries NSE -0.41 % has agreed to purchase 2 million barrels of Canadian heavy crude per month, three industry sources said, as a substitute for dwindling Venezuelan supply.

The deal, large for Canada, shows how global buyers are scrambling for new sources of heavy oil. Venezuela’s production has collapsed over the last several years, and U.S. sanctions have squeezed its ability to sell oil to international buyers, including Reliance.

The Indian refiner, which operates the largest refining facility in the world, is among several companies winding down purchases from Venezuela as a result of U.S. sanctions.