America’s U-turn and India’s strategy on Venezuelan oil! The game will change with the entry of Reliance! , India Us Policy Venezuela Crude Oil Supply Reliance Interest News

India Venezuela Oil Deal: A big and shocking news has come to light amid India’s increasing energy needs. The US has indicated that it may allow India to buy Venezuelan crude, that too under a US-controlled sales system. After this news, not only has the activity in the global oil market intensified, but India’s largest refinery company Reliance Industries has also shown interest in it.

Why did America suddenly change its stance on Venezuelan oil?

According to a senior White House official, America is now considering changing its old strict policy regarding Venezuelan oil. The reason is simple-

• Rapidly increasing energy demand of a country like India
• Increasing need of oil in global market
• and reusing Venezuelan oil reserves.

However, America has made it clear that this sale will be completely under its control and the earnings from it will be kept in American monitored accounts.

Who will benefit if oil is sold in the US-controlled system?

According to US Energy Secretary Christopher Wright, this system is being created so that the money received from oil does not go into corruption and ultimately its benefits reach the common people of Venezuela. Under this model, America itself will decide where, to whom and how the oil will be sold.

Why is Reliance Industries showing so much interest?

Reliance’s refining complex at Jamnagar in India is one of the largest and advanced refining plants in the world. Venezuelan heavy crude oil is considered very suitable for such complex refineries. Reliance has clearly said that “if non-US buyers are allowed under the rules, we will consider buying oil from Venezuela.”

Can India get cheap and stable oil supply?

Before US sanctions, India, especially companies like Reliance, were big buyers of Venezuelan oil. If this trade starts again, India’s crude oil sources will be diversified, dependence on oil imports will be balanced and it will be easier to handle the increasing energy demand.

Will this affect the global oil market?

Absolutely. Venezuela has the world’s largest proven oil reserves and India is among the world’s fastest growing energy consumers. In such a situation, if this new trade corridor opens, it can have an impact on global oil price, supply chain and geo-politics.