Indian Refiners Shut Out of Venezuelan Crude as U.S. Absorbs Most Volumes: 'Offers Are Not There'

Indian oil refiners are receiving only limited offers of Venezuelan crude as most available supply is being directed to the United States following Washington's takeover of Venezuelan oil sales after the capture of former president Nicolás Maduro, according to four refining executives cited in a report by Reuters.

Trading houses Trafigura and Vitol began marketing Venezuelan oil this month after an agreement between Caracas and Washington gave the U.S. control over roughly 50 million barrels of crude, with proceeds placed in a U.S.-supervised fund.

Since then, Indian companies including Reliance Industries, Indian Oil Corp, Hindustan Petroleum, and Mangalore Refinery and Petrochemicals have sought to secure supplies but have struggled to obtain significant volumes.

"Offers are not there," one executive told Reuters, referring to Vitol and Trafigura. "Traders are looking to meet their commitment to the U.S. market."

Executives said discounts on Venezuelan crude have also been insufficient to make purchases attractive. Trading firms have instead sold Venezuelan oil to U.S. and European refiners, including Valero, Phillips 66, Repsol and Vitol's Saras refinery in Italy. A Bharat Petroleum executive said the company is exploring partnerships to acquire small quantities of Venezuelan crude.

The shift reflects Washington's broader strategy to channel Venezuelan oil toward Western markets under President Donald Trump's energy plan. According to the Financial Times, the first U.S.-brokered sale went to Vitol in a deal worth about $250 million, followed by a similar transaction involving Trafigura.

A senior U.S.-based trader from Vitol named John Addison has been a major donor to Trump's re-election campaign, donating about $6 million to political action committees backing Trump's 2024 re-election effort, including $5 million to Maga Inc in October, as

The interim leadership in Venezuela led by Delcy Rodríguez has simultaneously moved to attract foreign investment, appointing U.S.-trained economist Calixto Ortega Sánchez to lead the country's main investment agency. Analysts told AFP that the appointment signals an effort to align the country's oil policy with U.S. expectations, though investors remain cautious. "Stability and political clarity" will be required before major capital commitments are made, said Rob Thummel of Tortoise Capital.