US Offers Venezuelan Oil to India Amid Falling Russian Imports
The United States has reportedly offered to supply Venezuelan crude oil to India, as New Delhi’s imports of discounted Russian oil decline. This move is part of Washington’s broader strategy to wean India off Russian energy while finding new markets for Venezuelan oil.
Key Developments
- US in talks with India to supply Venezuelan crude, reports Reuters.
- India’s Russian oil imports hit a 10-month low in April.
- Washington aims to reduce Venezuela’s dependence on China.
- No final deal has been reached between the US and India.
India’s Shifting Oil Imports
India, the world’s third-largest oil importer, became a major buyer of Russian seaborne oil after Western sanctions were imposed on Moscow in 2022. However, imports have recently fallen due to payment issues and a deliberate diversification of supply sources.
Data from energy cargo tracker Vortexa shows India’s imports of Russian oil dropped to a 10-month low in April.
The Venezuelan Oil Context
Venezuela possesses the world’s largest oil reserves, but its production has been severely hampered by years of underinvestment and US sanctions. The US temporarily eased sanctions in October 2023 after an election agreement but reimposed them in April 2024 when the Maduro government failed to meet commitments for free and fair polls.
India was once a significant buyer of Venezuelan oil, but purchases plummeted due to these sanctions.
Strategic US Motives
The US initiative serves a dual purpose: displacing Russian oil in the Indian market and reducing Venezuela’s economic reliance on China by opening alternative markets. Talks are ongoing, but no agreement has been finalised.
Both the Indian oil ministry and the US State Department declined to comment on the report.
