India Shifts Oil Purchases to US and Venezuela Following 2025 Trade Deal
According to Oilprice.com, the Indian government has asked refiners to consider buying more crude oil from the United States and Venezuela on the spot market. This request follows scrutiny of India’s oil purchases after a trade agreement with the United States.
Read also: How the U.S. Military Operation in Venezuela Is Affecting Container Shipping
Indian refiners are avoiding Russian crude oil in the wake of the trade deal. The White House stated the deal includes a commitment from India to stop importing Russian Federation oil directly or indirectly. A 25% tariff on India imposed by President of the United States Donald Trump in August 2025 due to India’s purchases of Russian crude has now been removed.
India has not officially confirmed it would halt all purchases of Russian crude oil. An Indian Foreign Ministry spokesperson stated last week that energy security and diversification of crude supplies would be paramount in sourcing decisions.
There are indications that India is being pressed to increase purchases of U.S. crude and to seek Venezuelan oil. The U.S. has engaged traders Vitol and Trafigura to sell Venezuelan oil. Executives at refineries stated that Indian buyers are being asked to prioritize U.S. and Venezuelan crude in spot market tenders.
Analysts suggest India could potentially increase its U.S. crude intake to approximately 400,000 barrels per day, up from an estimated 225,000 barrels per day imported last year. However, price, sulfur content, and higher shipping costs from the U.S. coast will influence Indian refiners’ decisions, as they prefer the cheapest non-sanctioned supply available.
India’s largest private refiner, Reliance Industries, has reportedly begun purchasing Venezuelan crude again. This marks the first Indian purchase of oil from Venezuela since the U.S. took control of Venezuela’s oil sales early last month. So far this year, Indian refiners have increased purchases of crude from West Africa and the Middle East to replace lost Russian supply.
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