Washington Signals Conditional Reopening Of Venezuelan Oil Supply To India

The United States has indicated its readiness to allow India to purchase Venezuelan crude oil under a newly proposed framework that would place sales and revenues under Washington’s supervision, marking a potential shift in the dynamics of energy trade.

A senior US administration official confirmed that the United States could permit India to buy Venezuelan oil, recognising the country’s substantial energy needs.

While the official declined to share operational details, they noted that the mechanism for such sales is still under development.

The remarks follow recent statements by US Energy Secretary Christopher Wright, who suggested that Venezuelan oil exports could resume more broadly. However, he added that this would only happen through a structure managed by the United States government.

In a televised interview, Wright explained that the US would market Venezuelan crude and deposit the proceeds into accounts it controls in Washington.

According to him, the intent is to ensure that funds ultimately benefit the Venezuelan population rather than political interests or corrupt networks.

He emphasised that the policy aligns with President Donald Trump’s broader approach of maintaining pressure on sanctions while restructuring Venezuela’s oil sector.

Wright stressed that authorities would strictly enforce compliance, citing recent oil tanker seizures as evidence that they would not tolerate violations.

“Only lawful and approved energy trade will be allowed,” he said, indicating that oil shipments outside the new framework could face intervention.

Strong Global Demand for Venezuelan Crude

Wright noted that US refiners, whose facilities were historically designed to process heavy crude, continue to drive strong demand for Venezuelan oil.

He added that interest extends well beyond North America, with buyers in Europe and Asia also keen to secure supplies.

At an energy conference in New York, the Energy Secretary said the US plans to begin by marketing between 30 million and 50 million barrels of Venezuelan oil currently in storage, followed by ongoing sales from future production. The strategy also includes supplying diluents and facilitating equipment imports to stabilise and eventually increase output.

Before US sanctions curtailed trade, India was one of Venezuela’s largest crude buyers, relying on its heavy oil for complex refineries. Renewed access could help India diversify its import basket at a time of rising domestic demand.

Venezuela holds the world’s largest proven oil reserves, and India is among the fastest-growing energy consumers. If implemented, the proposed arrangement could have significant geopolitical and economic implications.

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