This outreach comes amid a broader effort by New Delhi to diversify its crude supply sources while Indian refiners reduce their reliance on discounted Russian oil as part of ongoing adjustments in global energy markets.

According to sources familiar with the matter, Washington has indicated that India can resume purchases of Venezuelan crude that had previously been restricted under U.S. tariff policy, which imposed a 25 percent levy on countries for buying Venezuelan oil in 2025.

The suggestion to lift or ease those restrictions is intended to give India additional options to balance its crude import mix as Russian oil volumes shrink in the coming months.

India’s imports of Russian crude, which stood at about 1.2 million barrels per day in January, are expected to fall to around 1 million bpd in February and approximately 800,000 bpd in March, with further reductions possible later in the year.

Some sources project that Russian imports could eventually decline to between 500,000 and 600,000 bpd as India continues diversifying its portfolio of crude suppliers.

This shift reflects broader changes in global crude flows that have been influenced by Western sanctions on Russia following its invasion of Ukraine in 2022, which drove down Russian oil prices and made that oil commercially attractive to buyers like India.

After becoming a major buyer of Russian crude following the conflict, India is now adjusting its purchasing patterns as geopolitical pressures and trade relationships evolve.

In response to the U.S. tariff regime, Indian refiners had already begun diversifying their purchases.

They increased imports from Middle Eastern, African, and other South American sources to help reduce dependence on Russian oil supplies.

The Venezuela offer comes at a time when Venezuela’s oil sector has been undergoing changes, including reforms aimed at attracting investment and expanding production following shifts in domestic policy.

However, it is not yet clear whether Venezuelan oil would be marketed through global trading firms or sold directly by state entities.

India’s own energy strategy emphasizes diversification to ensure long-term security of supply and to manage price volatility, especially as refining capacity and domestic demand evolve.

By securing flexible access to multiple crude sources, India aims to balance economic interests with its growing energy requirements.

At the same time, discussions between U.S. and Indian officials continue against the backdrop of broader trade and economic relationships, including efforts to reduce trade barriers and strengthen economic ties.

If policy changes are formalized, Venezuelan crude could become an increasingly important element of India’s energy import mix as Russian volumes decline.

Reliance Industries, India’s leading private refiner, is set to recalibrate its Russian oil imports in full compliance with government guidelines. State-owned refiners, including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, are also reviewing their supply chains to ensure smooth transitions, demonstrating India’s commitment to international trade norms and energy security.

The adjustments will allow India to expand procurement from alternative markets, including the Middle East and other global suppliers, maintaining steady crude supplies while enhancing long-term energy resilience. Analysts estimate that the change will have a minimal impact on the overall import bill, reflecting efficient planning and cost management.

By diversifying sources, Indian refiners are strengthening the country’s energy independence and reducing risks associated with relying heavily on a single supplier. This approach also provides new opportunities to explore competitive global markets and adopt best practices in supply chain management.

The move comes at a time when India is negotiating trade agreements with the U.S., and realignment of oil imports could help facilitate favorable outcomes for Indian exporters. By proactively adjusting trade practices, India demonstrates flexibility and foresight in balancing domestic needs with global obligations.

Industry experts highlight that India’s ability to source crude from multiple regions will safeguard domestic supply while supporting continued economic growth. The strategy ensures uninterrupted refinery operations and contributes to stable energy prices, benefiting both industries and consumers nationwide.

Indian refiners are also exploring innovative financial arrangements to maintain smooth operations and access global capital markets. By leveraging strong regulatory compliance and market insights, India’s energy sector is poised to remain robust and competitive in the global arena.

Overall, the strategic recalibration of oil imports reflects India’s proactive approach to energy security, trade cooperation, and economic stability. By diversifying supply sources and aligning with international norms, the country is setting a positive course for sustainable growth and strengthened global partnerships.