In a significant turnaround in global energy trade, the United States granted a general license to Reliance Industries Ltd that will allow the Indian energy giant to directly import Venezuelan oil, an operation that had been suspended since early 2025 due to sanctions.
Direct authorization to purchase and refine Venezuelan crude oil
The license, issued by the Office of Foreign Assets Control (OFAC), authorizes the purchase, refining and export of Venezuelan oil already extracted.The license, issued by the Office of Foreign Assets Control (OFAC), authorizes the purchase, refining and export of Venezuelan oil already extracted. This opens the door for Reliance, operator of the world’s largest refining complex in Jamnagar, to return to using Venezuelan heavy crude as a key source, gradually replacing Russian supply, which is becoming less and less accessible due to international pressures.
According to sources close to the process, the Indian refiner had requested the authorization in January, and began to make moves even before formally obtaining it. At the beginning of February, it acquired 2 million barrels through the trader Vitol, who already had an individual license to trade Venezuelan crude together with Trafigura.
Advantages for Reliance and Caracas
For Reliance, returning to discounted crude from Venezuela not only improves its refining margins, but also diversifies its sources in a volatile international context. The company was already one of the main buyers of Venezuelan oil before the 2025 restrictions.
In the case of Venezuela, direct sales to a player such as Reliance represent a step towards the recovery of its revenue stream and productive capacity. After years of sanctions and falling investments, the opportunity to resume large-scale exports could inject vital foreign exchange into the country.
Implications for the global energy market
The decision also marks a turning point for the oil market in Asia and Latin America. Venezuelan oil, heavier and cheaper than other varieties, gains competitiveness just as many Asian refineries are under pressure to move away from Russian oil. Russian oil.
Furthermore, this commercial rapprochement between India, Venezuela and the United States could reconfigure supply routes and market shares, also affecting players such as China and Gulf countries.
Source: Reuters