US Suggests Venezuela Oil Supply To India As Russian Imports Decline

Washington: A major change may be seen in the international energy market. It is reported that the United States has told India that it can soon buy crude oil from Venezuela again. Information about this has been given by news agency Reuters, quoting sources. It is believed that this step will help India reduce its dependence on Russian oil.

Why is India reducing Russian oil?

India had been buying cheaper crude oil from Russia in the past few years, especially after the Ukraine war when Western countries imposed sanctions on Moscow. But now after increasing tariffs and pressure from America, New Delhi has decided to reduce purchases. Sources say that imports from Russia can be reduced by several lakh barrels per day in the coming months.

Did tariffs put pressure on India?

US President Donald Trump had imposed tariffs of up to 25 percent on countries that buy Venezuelan oil, which included India. He also took a tough stance against Venezuelan President Nicolas Maduro. Now, showing softness in policy, Washington is giving way to alternative supplies to India.

How will Venezuelan oil reach India?

It is not yet clear whether the oil will be sold directly by Venezuelan government company PDVSA or supplied through international trading companies like Vitol and Trafigura. Talks are ongoing on this.

From which other countries is India taking oil?

Oil Minister Hardeep Singh Puri has already said that India is diversifying its sources. Procurement from Middle East, Africa and South America has been increased. According to recent data, the share of OPEC countries has also increased.

What could be the further impact?

If supply starts from Venezuela, India can get a cheaper option and trade relations with America can also improve. Overall, this new oil strategy is not just becoming a matter of buying and selling, but a decision related to both diplomacy and economy.