India eyes shift from Russian to Venezuelan oil as US takes control of Caracas supplies

Venezuelan oil is poised to replace Russian supplies in the Indian market as the South Asian nation’s refiners pivot toward a shifting energy landscape.

Indian refiners, which historically sourced significant quantities of raw material from Venezuela, are currently evaluating the new geopolitical reality following the US removal of Nicolas Maduro and Washington’s subsequent announcement that it has taken control of the Latin American country’s oil exports.

Reliance Industries enters talks with Washington

Reliance Industries, India’s largest private corporation, is in discussions with the Washington administration to secure permission to purchase Venezuelan oil, according to two sources familiar with the matter who spoke to Reuters.

The company previously imported between 300,000 and 400,000 barrels per day (bpd) from Venezuela during the middle of the last decade, but halted these operations when US sanctions were implemented.

In 2025, under a limited license granted by the US Treasury Department, Reliance managed to import an average of 63,000 bpd between January and April.

The company’s processing complex at Jamnagar—the largest of its kind in the world—possesses an infrastructure perfectly suited to refining heavy, high-sulfur Venezuelan crude. According to data from Jefferies, this grade of oil typically trades at a discount of $5 to $8 per barrel compared to Brent crude.

“Refiners love dirty oil”

“This is a perfect opportunity for Reliance; their refinery units love these dirtier grades of oil—they always have,” a source familiar with the position of Indian oil companies told the Financial Times.

Michael Kugelman, Director of the South Asia Institute at the Wilson Center (formerly with the Atlantic Council), noted that India stands to gain significantly from this transition.

“Private Indian energy giants could generate substantial revenue by processing large volumes of Venezuelan heavy crude. India can also achieve its goal of diversifying its imports, particularly at a time when it is reducing Russian oil intake,” Kugelman evaluated.

Reliance, formerly the largest Indian buyer of Russian raw materials, announced it would cease purchases from Russia after Washington imposed sanctions on Lukoil and Rosneft in late October.

In a statement last week, the company indicated it would consider resuming Venezuelan oil purchases if Washington permits sales to buyers outside the US.

US to release 50 million barrels of oil to the market

US President Donald Trump has announced that the US will take up to 50 million barrels of oil from Venezuela and sell it at market prices.

Trump stated that he would personally manage the resulting revenue to ensure it benefits the people of both nations. Meanwhile, Energy Secretary Chris Wright announced that the US would continue to sell oil produced in Venezuela for an “indefinite period.”

One source told Reuters that Reliance is prepared to purchase Venezuelan oil from US companies or other authorized entities, provided it is offered at attractive prices.

Caution from New Delhi

Following the operation by US forces at the presidential palace in Caracas, which resulted in the removal of Maduro, the government in New Delhi issued a brief statement expressing “deep concern” regarding the recent events in Venezuela.

In late August, Trump had increased import tariffs on Indian goods from 25% to 50% in a bid to pressure the country to halt its Russian oil purchases.

Premasish Das, Executive Director of Oil Markets for Eurasia, Africa, and the Middle East at S&P Global, told the Financial Times: “Indian refining companies are very familiar with Venezuelan crude and will be ready to resume purchases as soon as the right conditions are established.”