US Ready to Allow Venezuelan Oil Sales to India Under Washington-Controlled Framework

The United States has signalled its willingness to allow India to resume purchasing crude oil from Venezuela under a new framework that would be tightly controlled by Washington. The move marks a potential shift in global energy trade dynamics and could help India address its rapidly growing energy requirements while keeping US sanctions mechanisms firmly in place.

According to official statements from the White House, Washington is prepared to permit Indian refiners to access Venezuelan crude, provided transactions operate within a US-supervised structure. When asked directly about India’s potential return as a buyer of Venezuelan oil, a senior US administration official confirmed that the proposal is under active consideration, though operational details are still being finalised.

The development follows recent comments by the US Energy Secretary, who stated that the United States is open to allowing Venezuelan oil to reach “almost all countries” under strict oversight. Under this system, Venezuelan crude would be marketed by the US government, with revenues flowing into monitored accounts to ensure compliance with American policy objectives.

Before sanctions disrupted bilateral trade, India was among Venezuela’s largest crude oil customers, importing heavy-grade oil well suited to its complex refinery infrastructure. A renewed supply channel could support India’s efforts to diversify energy imports at a time when domestic consumption continues to rise sharply due to economic expansion and industrial growth.

US officials have also outlined plans to release between 30 million and 50 million barrels of Venezuelan oil currently held in storage. These volumes would initially be sold through US-managed arrangements, followed by continued marketing of future production. Analysts believe such a move could reshape parts of the global oil market, with Washington exercising unprecedented control over Venezuelan exports.

Speaking separately, US President Donald Trump said the United States plans to refine and sell up to 50 million barrels of Venezuelan crude oil as part of a broader strategy to revive the country’s oil sector. He described the initiative as both an economic opportunity and a political reset, emphasising that Venezuela’s energy resources would be developed under close US supervision.

Trump also indicated that American oil companies could invest at least $100 billion into Venezuela’s oil industry to restore infrastructure and boost output. Despite holding the world’s largest proven oil reserves, Venezuela’s production capacity has suffered for years due to sanctions, mismanagement, and underinvestment. Under the proposed arrangement, Washington would decide which companies are authorised to invest, underscoring a hands-on approach to managing capital flows and production levels.

The announcement comes amid significant political changes in Venezuela, with US officials confirming that oil exports would remain under American control indefinitely, even as limited shipments are allowed to non-US buyers such as India. Millions of barrels of Venezuelan crude remain stranded in storage tanks and vessels due to sanctions and logistical constraints, making controlled exports a practical solution for easing bottlenecks.

For India, access to Venezuelan oil under this framework could strengthen energy security while navigating complex geopolitical realities. For the United States, the approach allows limited reopening of Venezuelan oil trade without relinquishing strategic control, positioning Washington as a central player in the future of Venezuela’s energy sector.