US offers Venezuelan oil to India as Russian crude imports fall

The United States has told India it may soon resume purchasing Venezuelan crude, using supply as a substitute as New Delhi moves to sharply cut imports of Russian oil, three sources familiar with the matter told Reuters.

The outreach comes as India vowed to cut Russian crude oil purchases after Washington raised tariffs on those imports. India is now on track to cut Russian oil intake by several hundred thousand barrels a day in the coming months, the sources said, but were not identified due to the sensitivity of the discussions.

President Donald Trump imposed 25% tariffs on countries that bought Venezuelan oil, including India, in March 2025, and his administration stepped up a campaign against Venezuelan President Nicolas Maduro, who was captured by US forces on January 3.

Since then, Washington has signaled a shift, telling New Delhi it could resume Venezuelan purchases to help offset dwindling Russian supplies. The move is in line with U.S. efforts to curb revenues from Russian oil exports, which are funding Moscow’s war in Ukraine.

The sources did not provide details on whether the Venezuelan oil would be marketed by third-party trading houses such as Vitol or Trafigura or sold directly by Venezuelan state oil company PDVSA.

India became a major buyer of Russian oil after Russia’s 2022 invasion of Ukraine led to Western sanctions and steep discounts. However, President Donald Trump later raised tariffs on Indian goods, up to 50% in August, after adding another 25% levy related to Russian oil purchases.

“India is diversifying its crude sources as Russian oil imports fall,” Oil Minister Hardeep Singh Puri said last week, without directly commenting on Venezuelan supplies.

Two of the Reuters sources said India is preparing to cut Russian oil imports to less than 1 million barrels per day (bpd) soon. Imports stood at about 1.2 million barrels per day in January and are expected to fall to around 1 million barrels per day in February and 800,000 barrels per day in March, one of the sources said.

Another source said volumes could eventually fall to around 500,000 to 600,000 barrels per day, a move that could help India secure a broader trade deal with the United States.

Data from trade sources show India’s Russian oil imports fell to a two-year low in December, pushing OPEC oil’s share of India’s import basket to an 11-month high. Indian refiners have increased their purchases from the Middle East, Africa and South America to fill the gap.

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With input from Reuters