Washington is signaling a major shift in its energy sanctions policy, with a senior White House official confirming the United States is prepared to let India resume purchases of Venezuelan crude oil. This comes under a tightly controlled framework managed directly by American authorities, potentially reopening a vital supply line for one of India’s key pre-sanction suppliers.
The announcement highlights growing flexibility in U.S. strategy amid global energy demands. When pressed on whether the U.S. would accommodate India’s surging energy needs by granting access to Venezuelan barrels, the official responded affirmatively to IANS, saying simply ‘Yes,’ while noting that full details of the arrangement are still being finalized.
Energy Secretary Christopher Wright elaborated in a Fox Business interview, stating the U.S. aims to facilitate Venezuelan oil sales to nearly all interested nations. ‘We’re restarting Venezuelan crude, but under a specific regime where sales flow through the U.S. government, and revenues deposit into U.S.-controlled accounts,’ Wright explained. The goal is to ensure funds benefit ordinary Venezuelans, bypassing corruption and regime misuse.
Interest in Venezuelan heavy crude spans Europe, Asia, and beyond, with U.S. refineries specifically designed to process it. Wright tied this to former President Trump’s tough sanctions approach, emphasizing that Venezuela must partner with the U.S. or face halted exports. Recent seizures of sanctioned oil tankers underscore America’s commitment to enforcement.
In a New York energy conference, Wright revealed plans to market 30 to 50 million barrels of stored Venezuelan oil, followed by steady future production. The U.S. will supply diluents, equipment, and parts to stabilize and ramp up output, while negotiating with past and prospective oil firms for investments.
For India, a former top buyer whose refineries are optimized for this oil, this could diversify imports amid rising demand. As the world’s fastest-growing energy consumer with vast reserves but heavy reliance on imports, Venezuela’s oil offers strategic relief. This move balances humanitarian aid, market stability, and geopolitical leverage, reshaping global oil dynamics.