US Signals Green Light For India To Import Venezuelan Oil Under New Control Mechanism

Washington: The US has indicated that it is ready to allow India to buy oil from Venezuela under a new, US-controlled framework. A senior official of the Trump administration has said this. If this arrangement is implemented, the trade frozen due to US sanctions may partially revive.

Can India get permission to buy oil from Venezuela?

When asked directly whether the US would allow India to buy crude oil from Venezuela, the answer was clear. The Trump administration official said, “Yes.” However, he also added that the finer rules of this system are still being decided.

What reasoning is America giving behind this decision?

The official cited the recent statement of US Energy Secretary Christopher Wright. Wright said the US was prepared to sell Venezuelan oil to “almost all countries”, but that sales would be under strict controls.

How will oil sales be controlled?

In an interview with Fox Business, Wright said that Venezuelan oil will come back on the market, but it will be marketed by the US government. Oil earnings will also go into controlled accounts, so that America remains in control of the entire transaction.

How important is this opportunity for India?

Before US sanctions, India was among the largest buyers of Venezuelan oil. India's refineries are capable of processing heavy crude oil. In such a situation, resumption of supply can help India diversify its energy sources, especially when domestic demand is continuously increasing.

How much quantity of oil is America preparing to bring into the market?

During an energy conference in New York, Christopher Wright said that the US is planning to release 30 to 50 million barrels of Venezuelan oil lying in storage on the market. After this, future production will also be sold. This could change the direction of global oil trade.

What did Trump say about Venezuelan oil?

US President Donald Trump said that America will refine and sell up to 50 million barrels of Venezuelan crude oil. He presented it as both an economic opportunity and a political change.

What is Trump's plan regarding oil investment?

Trump claimed that American oil companies will invest at least $100 billion in Venezuela. He says that repairing the infrastructure is necessary to increase production in this country which has the world's largest oil reserves.

Will America have complete control over Venezuela's oil fields?

Trump made it clear that the US administration will decide which companies will be allowed to invest. That means America's role will remain fixed at every level, from oil production to earnings.

What does Maduro's arrest have to do with this decision?

This announcement has come at a time when America has detained former Venezuelan President Nicolas Maduro and sent him to America. This development has completely changed the political picture of Venezuela.

What picture seems to be emerging ahead?

Currently, Venezuela has millions of barrels of oil stuck in storage tanks and ships. US officials say US controls on exports will remain in place for a long time, although some oil may still reach non-US buyers. This can open up new options for countries like India.