Reliance Industries Limited is reportedly seeking U.S. authorisation to resume purchasing Venezuelan crude oil, according to Reuters sources familiar with the matter. This development represents a significant shift in the company's energy procurement strategy as it explores new sourcing opportunities in the global crude oil market.

Strategic Energy Procurement Move

The oil refining giant's pursuit of U.S. permits to buy Venezuelan crude marks a notable development in its supply chain strategy. According to two sources cited by Reuters on Friday, the company is actively working to secure the necessary authorisations from U.S. authorities.

Regulatory Framework Considerations

The move to seek U.S. authorisation highlights the complex regulatory environment surrounding Venezuelan oil transactions. Companies looking to engage in such transactions must navigate various international sanctions and compliance requirements, making official permits essential for legitimate business operations.

Market Implications

This strategic initiative by Reliance Industries reflects the company's efforts to diversify its crude oil sourcing portfolio. The development comes as global energy markets continue to evolve, with companies seeking to optimize their supply chains and explore new procurement opportunities within the existing regulatory frameworks.

Reliance Industries Ltd. has experienced a turbulent beginning to 2026, with shares declining more than 6% as investors grapple with multiple headwinds affecting the oil-to-telecom conglomerate. The selloff has erased approximately $15 billion from the company's market value, marking one of the stock's worst annual starts in recent memory and creating downward pressure on India's benchmark equity indices.

Market Performance and Key Metrics

The recent market performance highlights the severity of investor concerns surrounding Reliance Industries:

Retail Sector Concerns Drive Sentiment

Pressure on Reliance Industries stock intensified following disappointing outlooks from several of India's largest retailers, who flagged weaker-than-expected consumer demand. These developments have raised concerns that Reliance, being a major player in the retail segment, could face similar challenges with reduced discretionary spending affecting its retail operations.

US Legislative Pressure on Russian Oil

Investor sentiment deteriorated further after US Senator Lindsey Graham proposed legislation targeting countries that purchase Russian oil. This development pushed the stock's weekly decline past 7%, representing the steepest drop in more than 15 months. The proposed legislation has created uncertainty around Reliance's refining operations, which have benefited from processing discounted Russian crude in recent quarters.

Analyst Expectations and Outlook

Goldman Sachs Group Inc. analysts have provided mixed expectations for the upcoming quarterly results through December. Their analysis suggests:

Expected Performance by Segment

Analysts including Nikhil Bhandari noted in a January 9 report that the recent selloff was "potentially due to concerns around refining exposure to Russian crude and softer retail growth momentum across peers." Despite potential moderation in Russian crude volumes, they anticipate the company's refining margins will receive support from tight product markets through the next year.

Market Position and Analyst Sentiment

Despite the recent challenges, Reliance Industries maintains strong analyst support:

• Buy recommendations: 35 analysts (highest among global oil & gas firms with market values above $100 billion)
• Upside potential: Approximately 16% over the next 12 months based on consensus target price
• Previous momentum: Nearly 30% rally in the previous year driven by expectations of Jio Platforms Ltd. IPO

The company's quarterly earnings report scheduled for January 16 after market close will be crucial in determining whether management can address investor concerns and provide clarity on both retail performance and the impact of geopolitical developments on its refining operations.