India to buy Venezuelan oil instead of Iranian crude: Trump
What's the story
United States President Donald Trump has claimed that India will now be buying oil from Venezuela instead of Iran. "We've already made that deal, the concept of the deal," he told reporters on Air Force One. This comes after the US indicated to Delhi that it could soon resume Venezuelan oil imports, as part of efforts to reduce oil revenue funding Russia's activities in Ukraine.
Sector revival
US energy firms to invest billions in Venezuela's oil industry
Venezuela, which has the world's largest proven oil reserves, is now looking for foreign investment to revive its oil sector. The country has been under years of government control and sanctions. Trump said major US energy firms would invest billions in reviving Venezuela's oil industry, repairing infrastructure, and restarting production. "We're going to have our very large United States oil companies...go in, spend billions of dollars," he said.
Diplomatic engagement
Venezuela's interim president discusses energy cooperation with Modi
Venezuela's interim president, Delcy Rodriguez, recently spoke about energy cooperation with Prime Minister Narendra Modi. This came after Caracas announced reforms to open its hydrocarbons sector to private companies. The US has also issued a general license for oil companies to operate more freely in Venezuela under the new leadership in Caracas.
Bilateral partnership
India and Venezuela agree to deepen bilateral partnership
Modi and Rodriguez agreed to deepen their bilateral partnership in various sectors, including trade, investment, energy, digital technology, health, and agriculture. They also discussed cooperation in agriculture, science and technology, mining, and tourism, among other industries. This comes after a phone call between the two leaders, which followed the US's capture of former Venezuelan President Nicolas Maduro on January 3, although the call's timing may not be directly related to this event.
Market shift
US resumes Venezuelan oil shipments
The US resumed Venezuelan oil shipments in January, with 18 ships carrying crude oil to refineries in Texas, Louisiana, and Mississippi. This is the highest number since December 2024, according to Bloomberg. However, shipments to China have fallen to zero in January from an average of 400,000 barrels a day last year.