India may get access to Venezuelan oil as US signals huge policy shift; Reliance shows interest

Washington: The United States has signalled it is prepared to allow India to buy Venezuelan crude oil under a new US-controlled sales mechanism, a development that could revive energy trade between India and Venezuela, even as India’s largest refiner, Reliance Industries, said it would consider purchasing the oil if permitted for non-US buyers.

A senior White House official confirmed that Washington is open to India accessing Venezuelan oil, acknowledging India’s vast and growing energy needs. However, the official said the framework governing such sales is still being finalised and declined to provide further details. 

The renewed signal from the White House comes amid growing global interest in Venezuelan crude as the US reshapes its sanctions and enforcement strategy.

US Energy Secretary Christopher Wright has said Venezuelan oil will be allowed to flow again, but only under a structure in which sales are marketed by the US government, and proceeds are placed in accounts controlled by Washington.

Wright said the funds would ultimately be channelled back to Venezuela in a way that benefits the Venezuelan people, while preventing corruption and misuse. He also noted strong demand for Venezuelan crude from refiners in the United States, Europe, and Asia, indicating that access would not be restricted to a narrow set of countries.

Crucially for India, Reliance Industries Ltd — operator of the world’s largest refining complex at Jamnagar — said it is closely watching policy developments.

“We await clarity on access for Venezuelan oil by non-US buyers and will consider buying the oil in a compliant manner,” a Reliance spokesperson said in an emailed response to Reuters.

Before US sanctions curtailed trade, Indian refiners, including Reliance, were among the largest buyers of Venezuelan heavy crude, which is well-suited for complex refineries. Any resumption could help India diversify its crude basket at a time when energy demand continues to rise sharply.

The policy shift has been framed by the administration of President Donald Trump as part of a broader effort to enforce sanctions while restructuring Venezuela’s oil sector. Wright said the US would use control over oil flows and revenues as leverage to curb illicit activity linked to Venezuela’s earlier leadership.

He also underlined strict enforcement, pointing to recent seizures of sanctioned oil tankers as evidence that only “legitimate and lawful” energy commerce will be allowed.

Separately, US officials have said Washington plans to market between 30 million and 50 million barrels of Venezuelan oil currently in storage, followed by sales of future production. The US is also expected to allow supplies of diluents and equipment to stabilise and eventually expand output.

With Venezuela holding the world’s largest proven oil reserves and India among the fastest-growing energy consumers, the potential reopening of this trade corridor could carry significant implications for global oil markets.