Reliance to gain as Trump signals resumption of India–Venezuela oil trade

New Delhi: A US signal to Indian refiners to resume purchases of Venezuelan oil is likely to benefit Reliance Industries the most, given its position as the largest and most consistent processor of crude from the Latin American country. State-run refiners, including Indian Oil, MRPL, BPCL and HPCL, could also gain.

“India is coming in, and they’re going to be buying Venezuelan oil as opposed to buying it from Iran. So, we’ve already made that deal, the concept of the deal,” US President Donald Trump told reporters on Saturday.

India halted Iranian oil purchases in 2019 following US sanctions over Tehran’s nuclear programme but has since emerged as a major buyer of discounted Russian crude. Trump’s softening stance on India’s oil trade has raised hopes of a broader easing of US restrictions on India’s energy engagement with Venezuela, industry executives said.


ONGC holds stakes in two Venezuelan oil fields whose output has been declining for years due to poor management and underinvestment. More than $500 million in dividends from these assets remain trapped in Venezuela. ONGC executives are hopeful that any US concession would allow the company to secure greater operational control and revive production.

Trump said last month that the US would control Venezuelan oil sales and help revive the country’s oil sector, which has been battered by years of sanctions.

India has not received a single cargo of Venezuelan crude since May 2025, but Trump’s remarks have raised expectations of a resumption of trade. In 2024, Indian refiners imported an average of about 70,000 barrels per day from Venezuela, with shipments exceeding 150,000 bpd in two months, according to Kpler shipping data.

In recent days, Indian Oil, HPCL and MRPL have shown interest in buying Venezuelan crude, which is cheaper and heavier and typically delivers higher refining margins.

US sanctions and the war in Ukraine have reshaped global energy trade flows in recent years. Iranian barrels that once accounted for about 10% of India’s crude imports were replaced by supplies from the US and other producers after 2019. Following Russia’s invasion of Ukraine in early 2022, discounted Russian crude flooded the Indian market. Venezuelan oil dropped out of India’s import basket last year, but Trump’s latest signal could pave the way for its return as a meaningful supply source.