U. S. Offers Venezuelan Crude to India as It Lowers Russian Oil Imports
The United States has offered Venezuelan crude oil
to India as New Delhi sharply cuts its Russian oil imports, a major shift in
global energy trade dynamics driven by tariff pressures and geopolitical
tensions. U. S. officials indicated that Venezuelan oil could assist India in
replacing diminishing barrels from Russia, a move consistent with the broader
American plan of undermining Moscow’s energy revenue amidst ongoing conflicts.
India has been one of the world’s largest buyers of
Russian crude since the Ukraine war, importing approximately 1. 2 million
barrels per day (bpd) in January 2026. Nevertheless, Indian refiners are
decreasing purchases and are set to reduce volumes below 1 million bpd by
February and even more in the upcoming months. This fall has created a space in
India’s crude supply mix and led to the U. S. suggestion for Venezuelan
substitutes.
Tariff Pressures and Trade Negotiations Drive Policy
Shift
This offer comes after a period of increased tariffs
between the US and India, which saw Washington impose tariffs of up to 50% on
certain Indian goods due to their continued purchase of Russian oil. These
taxes have encouraged India to seek alternative oil suppliers while trying to
smooth out trade disagreements with America. With Russia playing a reduced
role in India’s energy imports, there is now an opportunity for the South American
country to provide its oil, especially if Beijing and New Delhi can come to
terms on pricing and transportation.
Venezuelan Supplies and Market Realities
Even with this American outreach effort, it may not
be easy for Indian refiners to get hold of Venezuelan crude. Recent figures
show that most of the additional Venezuelan barrels made available following
changes in U. S. policies have been going mainly towards American and European
refiners, thus leaving little for the Asian buyers. The major Indian companies
such as Reliance Industries and Indian Oil have reported limited offers from
suppliers, whereby discounts on Venezuelan crude may not always be enough to
stimulate immediate buying interest.
Moreover, it is uncertain whether Venezuela’s
state-run oil company PDVSA or international commodity traders will directly
market the Venezuelan crude, thereby adding complexity to the plans of Indian
buyers. In case there are any exports, they are anticipated to take a form that
would involve international traders or be conducted under special approvals
given by the United States.
India’s Strategy: Diversification Beyond Russia
In order to replace Russian supplies, refiners in
India have increased their supply from Middle East, Africa and South America
which adds diversity into their crude sourcing basket. According to government
as well as industry officials, this strategy helps in maintaining energy
security amidst complicated geopolitical issues.
0 Comments