New Delhi: In a major development, the White House is prepared to allow India to buy Venezuelan oil under a new US-controlled framework, according to a senior administration official. The announcement came as a potential reopening of supplies to one of Venezuela's largest pre-sanctions customers as Washington moves to market the country's crude globally.
Asked whether the United States was ready and willing to allow India to purchase Venezuelan oil, given India's large energy needs, an administration official responded positively."Yes," the administration official told news agency IANS, but declined to provide any further information, as the details of selling Venezuelan oil are still being worked out.
US to allow access to Venezuelan oil to all nations
The official pointed to Energy Secretary Christopher Wright's comments in a Fox Business interview, indicating that the US would be open to selling Venezuelan oil to "almost all countries."
In an interview with Fox Business, Wright said the United States is allowing Venezuelan oil to flow again, but under a structure in which sales are marketed by the US government, and proceeds are placed into accounts controlled by Washington. "So that oil, we're allowing it to flow. Again, it's marketed by the United States government. The money's gonna flow into accounts," he said, adding that funds would then be directed back to Venezuela in a way that "benefits the Venezuelan people, not corruption, not the regime".
Venezuelan crude oil not limited to few countries: US Energy Secretary
Wright said there was strong interest in Venezuelan crude not only from US refiners but also from buyers "in Europe and Asia and all around the world," underscoring the administration's position that sales would not be limited to a narrow set of countries.
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He noted that many US refineries were historically designed to process Venezuelan crude and said demand remained high. The Energy Secretary framed the policy as part of a broader effort by President Donald Trump to enforce sanctions while reshaping Venezuela's oil sector. "You can sell oil together with the United States, or you can not sell oil," Wright said, describing US control over oil flows and revenues as leverage to end what he called criminal activity and destabilizing behavior linked to Venezuela's previous leadership.
Why is it a big win for India?
1. Notably, before American sanctions curtailed trade, India was a major buyer of Venezuelan crude, using it to feed complex refineries configured for heavy oil.
2. India has faced pressure from Western nations to curb Russian oil purchases after Moscow's invasion of Ukraine, on concerns that oil revenue may be financing Russia's war effort.
3. The United States last year doubled tariffs on Indian goods to 50 per cent, citing India’s heavy buying of Russian crude. This made New Delhi tough to negotiate the ongoing trade deal. Now, the new announcement would give New Delhi an option for cheaper oil.
4. The possibility of renewed access could help diversify India's energy imports amid sustained demand growth. While Venezuela has the world's largest proven oil reserves, India is among the world's fastest-growing energy consumers and relies heavily on imports to meet its oil needs.
5. The latest announcement would be a great news for the Indian market as this came just a day after Trump administration allowed a bill that could impose 500 per cent tariff on New Delhi for purchasing oil from Moscow.
(With inputs from agency)