US Offers Venezuelan Oil To India As Russian Crude Imports Shrink: Report

Last Updated:January 31, 2026, 08:01 IST

The United States has told India it can soon resume Venezuelan oil purchases to replace shrinking Russian supplies, a report has claimed.

Fishermen ready the nets as oil tankers are docked at the Cardon refinery in Punta Cardon, Venezuela (Photo: AP)

The United States has told India it can soon resume purchases of Venezuelan crude as Washington looks to redirect supplies and curb Russian oil revenues, according to two Reuters reports citing people familiar with the discussions.

Three sources told Reuters that the US recently signalled to New Delhi that Venezuelan barrels could again flow to Indian refiners after tariffs were imposed last year over such imports.

The initiative is designed to compensate for shrinking Russian shipments following additional US duties linked to India’s buying of Russian oil.

President Donald Trump imposed 25 per cent tariffs in March 2025 on countries purchasing Venezuelan crude, including India, while escalating action against Venezuela and its leader, Nicolas Maduro, whom US forces captured on January 3.

Since then, Washington has begun directing Caracas’ government and plans to oversee the country’s oil industry indefinitely, the Reuters sources said.

The effort to steer Venezuelan oil toward India is also tied to US attempts to reduce Russian export revenues funding the war in Ukraine.

While the US has opened the door to renewed Venezuelan shipments, Reuters reported that actual volumes available to Indian refiners remain limited.

Four refining executives said only small quantities of Venezuelan crude are being offered because most cargoes are being channelled to the US market.

Trading houses Trafigura and Vitol began marketing Venezuelan oil this month following an agreement between Washington and Caracas that placed 50 million barrels under US control, with proceeds routed to a supervised fund.

Since then, Indian buyers, including Reliance Industries, Indian Oil Corp, Hindustan Petroleum Corp and Mangalore Refinery and Petrochemicals, have been seeking Venezuelan cargoes.

“Offers are not there. Traders are looking to meet their commitment to the US market," one executive told Reuters, referring to Vitol and Trafigura.

Reuters added that Indian refiners have previously said discounts on Venezuelan crude are not wide enough to make the barrels commercially attractive.

The trading houses have instead sold Venezuelan oil to US and European refiners, including Valero, Phillips 66 and Repsol.

The White House and the US Treasury Department declined to comment on the developments, Reuters said.

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