US offers Venezuelan oil to India to cut Russian crude imports
The United States has told India that it can soon resume purchases of Venezuelan crude oil as New Delhi sharply reduces its imports of oil from Russia, news agency Reuters reported on Friday.
The shift comes amid pressure from Washington on India’s energy trade, with Russian crude volumes to India expected to decline further.
The US outreach is intended to help India replace shrinking Russian oil imports with Venezuelan supplies, people familiar with the discussions told.
India’s Russian crude purchases, which stayed at about 1.2 million barrels per day (bpd) in January, are projected to fall to around 1 million bpd in February and about 800,000 bpd in March, a source said, with the possibility of further decline later on.
US President Donald Trump previously imposed a 25 per cent tariff on countries, including India, that buy Venezuelan oil – a policy that effectively discouraged Venezuelan imports. But as India moves to cut Russian crude, Washington has signalled it may allow Venezuelan barrels as an alternative source.
India diversifying oil supply amid tariff pressure
India became a major buyer of Russian oil after the 2022 Ukraine war triggered Western sanctions and steep discounts. Under US tariff pressure linked to those purchases, New Delhi is now diversifying its crude sources, increasing imports from the Middle East, Africa and South America to fill the gap.
Indian refiners have already begun limiting Russian crude purchases, and traders are exploring Venezuelan grades to replace lost volumes. It is not yet clear whether Venezuelan oil to India would be sold directly by Venezuela’s state oil company PDVSA or marketed through outside trading houses.
The United States has pushed sharply to reduce revenues from Russian oil exports, which it says help fund Moscow’s war in Ukraine. Allowing India to resume Venezuelan purchases aligns with that effort and could support broader trade negotiations between New Delhi and Washington.
India’s Russian oil imports have already fallen to their lowest level in two years, boosting the share of OPEC oil in the country’s import mix to an 11-month high as refiners tap alternative supplies.
