US Ready to Allow India Access to Venezuelan Oil Under New Framework

The United States is prepared to allow India to purchase Venezuela oil under a new US-controlled framework, a senior White House official confirmed, signalling a potential reopening of crude supplies to one of Venezuela’s largest pre-sanctions customers.

Asked whether Washington was ready to permit India to buy Venezuelan oil given its growing energy requirements, the administration official responded affirmatively but declined to provide further details, saying the structure for future sales was still being finalised.

The move would mark a significant shift in US policy as it seeks to reintroduce Venezuelan oil into global markets while maintaining tight oversight over revenues and trade flows.

The official referred to recent comments by Christopher Wright, the US Energy Secretary, who said Washington was open to selling Venezuelan oil to “almost all countries” under a framework controlled by the US government.

Speaking in a Fox Business interview, Wright said Venezuelan oil would be allowed to flow again, but sales would be marketed by the US government, with proceeds deposited into accounts overseen by Washington. The funds, he said, would be channelled in a manner intended to benefit the Venezuelan population rather than the country’s political leadership.

“That oil, we’re allowing it to flow,” Wright said. “It’s marketed by the United States government. The money’s going to flow into accounts.”

He added that interest in Venezuelan crude extended beyond US refiners to buyers across Europe and Asia, indicating that sales would not be limited to a narrow group of countries.

Wright noted that several US refineries were historically configured to process Venezuelan crude and said demand for the oil remained strong.

The Energy Secretary framed the initiative as part of a broader strategy under President Donald Trump to enforce sanctions while restructuring Venezuela’s oil sector. He said US control over oil sales and revenues would be used as leverage to curb corruption and unlawful activity linked to the country’s previous leadership.

Enforcement, Wright stressed, would be central to the approach. Referring to recent seizures of sanctioned oil tankers, he said US actions demonstrated that violations would be met with concrete measures.

“Only legitimate and lawful energy commerce, as determined by the United States, will be permitted,” Wright said when asked about military action against vessels transporting Venezuelan oil outside the approved framework.

Separately, speaking at an energy conference in New York, Wright said the US plans to market between 30 million and 50 million barrels of Venezuelan crude currently held in storage, followed by ongoing sales from future production. He added that Washington would also supply diluent and allow imports of equipment and spare parts to stabilise and eventually expand output.

US officials, he said, are in discussions with oil companies that previously operated in Venezuela as well as firms interested in returning, to determine conditions that would enable new investment.

Before US sanctions sharply curtailed trade, India was a major buyer of Venezuelan crude, using the heavy oil to supply complex refineries. Renewed access could help India diversify its energy imports as domestic demand continues to rise.

Venezuela holds the world’s largest proven oil reserves, while India is among the fastest-growing energy consumers globally and relies heavily on imports to meet its oil needs.