India-Venezuela Oil Trade Resumption Could Benefit Reliance, Indian Refiners

Published By DPRJ Universal | Published on Sunday, 1 February 2026

India is poised to resume purchasing oil from Venezuela, following indications from US President Donald Trump of a deal in concept. This development is expected to significantly benefit Indian companies like Reliance Industries and state-run refiners such as Indian Oil, primarily due to the attractive pricing and refining margins offered by Venezuelan crude. The move signifies a potential shift in international energy trade dynamics and could provide a cost-effective alternative for India's oil demands, bolstering its energy security and the profitability of its refining sector.

India may soon recommence its oil imports from Venezuela, a strategic move spurred by US President Donald Trump's signaling of a potential deal. This resumption of trade holds substantial implications, particularly for India's energy sector. Reliance Industries, a major private player, along with state-owned refiners like Indian Oil, are anticipated to be primary beneficiaries. Venezuelan crude oil is renowned for its competitive pricing and favorable refining margins, which could lead to increased profitability for these companies. The background to this development involves past US sanctions on Venezuela, which had previously curtailed such trade. Trump's recent comments suggest a thawing of these restrictions, or at least a pathway for India to re-engage. For India, diversifying its oil sources is a critical strategic objective, enhancing its energy security and reducing over-reliance on Middle Eastern suppliers. The re-entry of Venezuelan oil into the Indian market could provide a more cost-effective crude option, directly impacting the operational costs and output prices of refined products within India. Beyond the immediate economic gains for refiners, this potential resumption could also signal a broader realignment in global energy trade flows, with nations seeking more diversified and economically advantageous supply chains amidst evolving geopolitical landscapes. The shift underscores a pragmatic approach by India to secure its energy needs while capitalizing on favorable market conditions.