NEW DELHI, February 11. /TASS/. The Indian government urged state companies to consider an option of increasing oil purchases in the United States and Venezuela after clinching the trade deal with Washington, The Economic Times reports, citing sources.

The government suggested assigning the priority to imports of US and Venezuelan hydrocarbons when companies make contracts through tenders in the spot market for purposes of diversifying sources of oil supplies. Indian refineries are capable to refine about 20 mln metric tons of US oil per year or 400,000 barrels per day. At the same time, purchases of light and sweet oil from the US may be limited because its refining at facilities of Indian companies designed for heavier oil is unprofitable, the sources told the newspaper.

Doubts also exists concerning the feasibility of buying huge oil volumes from the US due to high transportation tariffs limiting efficiency of long-range marine transportation. India also has an opportunity to buy cheaper oil in West Africa and Kazakhstan with shorter delivery routes.

Earlier in February, Indian Oil Corp (IOC) and Hindustan Petroleum Corp (HPCL) jointly purchased 2 mln barrels of Merey oil from Venezuela. Oil was purchased from Trafigura trader, which obtained the US license for energy sales after the US captured Venezuelan President Nicolas Maduro in January.