US ready to sell Venezuelan oil to India under Washington-controlled framework
The United States has signaled it stands ready to let India buy Venezuelan oil under a new framework that Washington will control, marking a major shift in oil diplomacy. The White House official confirmed the stance as talks continue on legal and commercial details.
US Energy Secretary Christopher Wright recently said the government would allow Venezuelan crude to flow again, but only under strict US supervision. Wright told reporters that Washington would market the oil and manage payments to ensure transparency and benefits for Venezuelans rather than corruption.
India was once a major buyer of Venezuelan heavy crude before US sanctions tightened. Indian refiners valued this crude for its refining properties, especially for their complex refineries. Now, under the proposed US-controlled framework, New Delhi could diversify its energy imports if Washington grants the necessary approvals.
A senior US official directly answered when asked whether India could resume purchases of Venezuelan oil, saying “Yes,” though finer details remain unresolved. The official added that Washington intends to permit sales to “almost all countries,” expanding potential markets beyond the United States.
Under the emerging plan, the United States would market Venezuelan crude, oversee transactions, and channel funds through US-monitored accounts. Officials argue this control will prevent misuse of revenues and ensure they serve broader economic goals.
Meanwhile, President Donald Trump announced that Venezuela will sell between 30 million and 50 million barrels of sanctioned oil to the United States, with proceeds managed by the US government. Trump said he has directed Energy Secretary Wright to implement this plan immediately, aiming to stabilize energy markets and assert US influence over Venezuelan oil flows.
Analysts note that the sale of Venezuelan oil under this framework could reshape parts of the global oil trade. The United States would retain a central role in controlling crude distribution and revenues, while India and other buyers could gain access to previously restricted supplies.
For India, the potential to resume Venezuelan oil imports carries strategic importance. Diversified supplies could help New Delhi manage rising domestic demand and reduce dependence on any single source. However, Indian refiners must secure proper authorization from Washington to avoid running afoul of sanctions and regulatory safeguards.
Reliance Industries and other firms previously imported Venezuelan crude under US licenses, with deliveries totaling tens of thousands of barrels per day in early 2025. Those imports stopped after sanctions tightened, but companies have expressed interest in resuming purchases if allowed under new rules.
Still, the framework remains a work in progress, and legal, logistical, and political hurdles persist. Washington wants to ensure that any oil sales align with broader geopolitical objectives and do not empower sanctioned actors. The US also plans to control future oil production sales indefinitely, reinforcing its oversight role in Venezuela’s energy sector.
Global markets are watching closely. If finalized, the deal could ease some supply pressures and offer India a strategic source of heavy crude. Yet, stakeholders emphasize that full implementation hinges on detailed agreements and regulatory approvals that are still under discussion.
