The US move could lead to the resumption of Venezuelan oil supplies to India under the new arrangement. Washington: According to a senior administration official, the White House is ready to permit India to purchase Venezuelan oil under a new US-controlled framework, indicating a possible reopening of supplies to one of Venezuela’s biggest pre-sanctions clients as Washington works to market the nation’s crude internationally. Given India’s significant energy demands, an administration official gave a positive response when asked if the US was prepared and willing to permit India to buy Venezuelan oil.
The government insider told IANS, “Yes,” but refused to elaborate because the specifics of selling Venezuelan oil are still being worked out. Oil from Venezuela is once again pouring The official cited remarks made by Energy Secretary Christopher Wright in an interview with Fox Business that suggested the US would be willing to sell Venezuelan oil to “almost all countries.” Wright stated in an interview with Fox Business that the US is permitting Venezuelan oil to flow once more, but under a system where sales are promoted by the US government and the money received is deposited into Washington-controlled banks.
Therefore, we’re letting that oil run. Once more, the US government is marketing it. “The money is going to flow into accounts,” he stated, adding that the money would later be returned to Venezuela in a manner that “benefits the Venezuelan people, not corruption, not the regime.” Wright emphasized the administration’s stance that sales would not be restricted to a small number of nations by stating that there was significant demand in Venezuelan oil not only from US refiners but also from purchasers “in Europe and Asia and all around the world.”
Strong demand
He stated that demand was still high and pointed out that many US refineries were originally built to process Venezuelan crude.
The Energy Secretary presented the idea as a component of President Donald Trump’s larger initiative to change Venezuela’s oil industry and impose sanctions. Wright stated, “You can sell oil together with the United States, or you can not sell oil,” using US control over oil profits and flows as leverage to put an end to what he saw as criminal activities and destabilizing behavior associated with Venezuela’s past administration. Wright also underlined how important enforcement was to the strategy. Wright cited recent seizures of sanctioned oil vessels as evidence that US policies and sanctions would be implemented rather than just declared.
In response to a query concerning US military activities against ships transporting Venezuelan oil outside of the new framework, he stated, “Only legitimate and lawful energy commerce, as determined by the US will be permitted.” Wright described how the United States intends to market between 30 million and 50 million barrels of Venezuelan oil currently in storage, followed by continuous sales of future output, in separate remarks given at an energy conference in New York.
Increasing output
“We’re going to get that crude moving again and sell it,” he said, adding that in order to stabilize and then increase output, the US would also supply diluent and allow imports of parts and equipment.
He stated that US authorities were actively discussing the requirements for investment with oil corporations that had previously operated in Venezuela as well as those who were interested in doing so. “What are the prerequisites for capital flow?” Wright described it as a continuous process that involves the US government, Venezuelan officials, and energy companies. Notably, India was a significant purchaser of Venezuelan crude prior to US trade restrictions, feeding sophisticated refineries set up for heavy oil. In the face of ongoing demand growth, the potential for restored access could aid in diversifying India’s energy imports.
India is one of the fastest-growing energy consumers in the world and mainly depends on imports to meet its oil demands, despite Venezuela having the greatest proven oil reserves in the world.
