US negotiating with India on Venezuelan oil sale, US envoy says | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]Oil platforms and pumpjacks at Lake Maracaibo, in Cabimas, Venezuela, January 26, 2026. REUTERS/Leonardo Fernandez Viloria/File Photo [Purchase Licensing Rights, opens new tab]- Companies- Summary- Interim trade deal effective April, India trade minister says- US made oil supply diversification central to India trade talk ...

The U.S. shale boom is running out of steam, making Venezuela’s vast reserves look attractive to some U.S. oil companies. - MarketWatch/Rystad ShaleWellCube, iStockphoto The shale-oil revolution that transformed the U.S. into the world’s top oil producer is entering a new phase — one that could see America’s hard-fought lead in energy erode in fewer than five years as oil production growth peters out. The issue is a simple one. Shale well output declines rapidly. On average, a well produces roughly 80% o ...

Core Viewpoint - Maurel & Prom is optimistic about resuming Venezuelan oil exports following the recent easing of U.S. sanctions on the country's energy sector, marking a significant shift in the regulatory environment [1] Group 1: Sanctions and Regulatory Changes - The U.S. government issued two general licenses allowing major energy companies to operate in Venezuela, representing the most substantial easing of sanctions since the removal of President Nicolas Maduro [1] - Maurel & Prom described the easing of sanctions as a "constructive step," although it was not included in the list of companies covered by the new licenses [1] Group 2: Company Operations and Performance - The company has been unable to export Venezuelan oil since Q2 of the previous year due to the suspension of its license by the Trump administration [1] - Maurel & Prom submitted a new license application to the U.S. Office of Foreign Assets Control (OFAC) in early January, seeking full resumption of operations in Venezuela [1] - The company reported a significant increase in identified reserves in Venezuela, with studies confirming the potential of previously unproven zones [1] Group 3: Production Details - In the Urdaneta Oeste field, where Maurel & Prom holds a 40% working interest, gross production averaged about 21,000 barrels of oil per day in January, resulting in a net output of 8,400 barrels per day for M&P Iberoamerica [1]

Core Viewpoint - The United States has granted a general license to Reliance Industries, allowing the company to purchase Venezuelan oil directly, which is expected to facilitate a significant oil supply deal and reconstruction plan for Venezuela's energy sector [1]. Group 1: License and Impact - The general license permits the purchase, exportation, and sale of Venezuelan-origin oil that has already been extracted, including its refining [1]. - This license could accelerate Venezuela's oil exports and lower crude costs for Reliance, which operates the world's largest refining complex [1]. - Reliance had previously ceased Venezuelan oil purchases due to U.S. sanctions but is now positioned to resume these activities [1]. Group 2: Market Dynamics - Reliance's direct purchase of Venezuelan oil is seen as a cost-effective strategy to replace Russian oil, as Venezuelan heavy crude is sold at a discount [1]. - The company recently acquired 2 million barrels of Venezuelan oil from trader Vitol, which also received U.S. licenses to market and sell Venezuelan oil [1]. - Indian refiners, including Reliance, are avoiding Russian oil purchases for April delivery, which may facilitate a trade agreement with the U.S. [1]. Group 3: Geopolitical Context - The easing of sanctions follows the U.S. capture of Venezuelan President Nicolas Maduro, indicating a shift in U.S. policy towards Venezuela's energy sector [1]. - President Trump has encouraged India to increase oil purchases from both the U.S. and Venezuela, further influencing market dynamics [1].

Core Viewpoint - Venezuela's state oil company PDVSA has reversed most of its output cuts, increasing total production close to 1 million barrels per day (bpd) following a U.S. oil blockade that had previously constrained output [1][2]. Group 1: Production Recovery - PDVSA has resumed production in the Orinoco Belt, now producing slightly over 500,000 bpd, which is more than 100,000 bpd above early January levels [3]. - The recent increases in production are attributed to the easing of export restrictions and the granting of U.S. licenses to trading houses for Venezuelan oil exports [3][4]. Group 2: U.S. Involvement - The U.S. Treasury Department has issued general licenses allowing U.S. companies to export Venezuelan oil and provide fuel, which is expected to facilitate further authorizations for oil exploration and production in Venezuela [4]. - Initial U.S. licenses granted to trading houses Trafigura and Vitol are part of a $2 billion supply agreement between Caracas and Washington, aiding in the recovery of Venezuelan oil exports [3][4]. Group 3: Impact of Blockade - The U.S. oil blockade imposed in December led to significant output cuts as millions of barrels of crude were stranded in the country, but recent developments have allowed PDVSA to boost production and exports [2][5]. - The easing of the blockade has provided much-needed diluents for Venezuela's extra heavy oil, enabling PDVSA to enhance production levels [5].

Group 1 - Reliance Industries has purchased 2 million barrels of Venezuelan oil from trader Vitol at a discount of approximately $6.5-$7 per barrel compared to ICE Brent for April delivery [1][1][1] - The acquisition involves one very large crude carrier, indicating a significant investment in crude oil supply from Venezuela [1][1][1] - This move reflects Reliance's strategy to secure cheaper oil supplies amid fluctuating global oil prices [1][1][1] Group 2 - The transaction highlights India's increasing openness to commercial crude supply from Venezuela, suggesting a potential shift in energy sourcing strategies [1][1][1] - The deal comes at a time when global oil markets are experiencing volatility, influenced by geopolitical factors and supply concerns [1][1][1] - Reliance's actions may impact the broader oil market dynamics, particularly in relation to pricing and supply chains [1][1][1]

Core Viewpoint - The recent U.S.-India trade deal, which includes India's agreement to halt Russian oil purchases, is met with skepticism regarding its actual implementation, given India's historical ties with Russia and its need for affordable oil. Group 1: U.S.-India Trade Deal - President Trump announced a trade deal with India, stating that India agreed to stop buying Russian oil and increase purchases from the U.S. and potentially Venezuela [4] - The U.S. will reduce the main tariff on India from 25% to 18% and remove an additional 25% penalty tariff imposed last summer [6] - Modi confirmed the deal, expressing satisfaction over reduced tariffs for Indian products [7] Group 2: Russia's Response - The Kremlin has not received any official communication from India regarding the cessation of oil purchases, emphasizing the importance of the strategic partnership with India [2] - Deputy Prime Minister Alexander Novak downplayed the potential loss of Indian custom, stating that energy resources remain in demand [3] Group 3: Skepticism and Analysis - Analysts express doubt that India will completely end Russian oil purchases due to its need for cheap oil and the desire to maintain foreign policy autonomy [7][8] - Evan A. Feigenbaum noted that India is unlikely to make explicit commitments against Russian oil, as it would undermine its defense relationship with Russia [9] - Farwa Aamer highlighted that India will need to balance its relations with both Russia and the U.S. while navigating its oil import structure [10] Group 4: Economic Implications - Moody's Ratings agency indicated that India is unlikely to completely turn away from Russian oil due to potential economic impacts, including increased manufacturing costs and higher consumer prices [11] - A complete shift away from Russian oil could disrupt India's economic growth and lead to tighter supply and higher inflation [12]

The oil tanker "Grinch" (R), suspected of belonging to the Russian's shadow fleet, is seen outside the coast of Martigues near the port of Marseille-Fos on January 25, 2026, as it's surveilled by the French Navy.President Donald Trump announced a U.S. trade deal with India on Monday which he said includes a promise to from India to stop buying Russian oil and buy from Venezuela, but data shows the shadow fleet of tankers moving sanctioned crude continues to unload at Indian ports.Global data and analytics f ...

Core Insights - Venezuelan oil exports increased significantly to approximately 800,000 barrels per day (bpd) in January from 498,000 bpd in December, following the U.S. capture of Nicolas Maduro and the end of an oil blockade [1][2] Group 1: Export Dynamics - The U.S. oil embargo imposed in December led to the accumulation of over 40 million barrels of crude and fuel in storage, which forced PDVSA to cut output in early January [2] - The January export volume was close to the average of 847,000 bpd for the previous year, but PDVSA's partners need to accelerate exports to reduce inventory levels and reverse output cuts fully [3] - The U.S. regained its position as the main destination for Venezuelan crude, with exports of about 284,000 bpd, primarily driven by Chevron, which increased its shipments from 99,000 bpd in December to 220,000 bpd in January [5] Group 2: Licensing and Operations - The U.S. Treasury Department issued a broad license allowing U.S. companies to engage in various activities related to Venezuelan oil, facilitating exports and operations for PDVSA [4] - Vitol and Trafigura exported 12 million barrels of Venezuelan crude and fuel oil under U.S. licenses, averaging about 392,000 bpd in January, primarily to Caribbean storage terminals [6] - Between 18 million and 38 million barrels are yet to be exported under a $2 billion supply deal between Caracas and Washington, with proceeds directed to a U.S.-supervised fund [7]

Group 1: U.S.-China-Venezuela Oil Dynamics - President Trump indicated that China may negotiate a deal to purchase Venezuelan oil, highlighting the potential for significant transactions in this sector [1] - China currently imports approximately 2 million barrels per day of asphalt-rich oil, with around 500,000 barrels per day sourced from Venezuela, which is essential for meeting over half of its daily asphalt requirements [3] - The U.S. has strategic leverage over China by controlling access to Venezuelan heavy crude, which is vital for maintaining asphalt quality [4] Group 2: India's Oil Strategy - India is expected to pivot towards Venezuelan oil, replacing its previous Iranian imports, which were halted due to U.S. sanctions in 2019 [5] - Following the sanctions on Iran, Indian refiners shifted to U.S. oil and later became the largest buyer of discounted Russian oil after the sanctions on Russia in 2022 [5] - The U.S. Treasury Secretary mentioned the possibility of lifting the 25% tariff on Indian goods, which may influence India's oil purchasing decisions [6] Group 3: Sanctions and Market Adjustments - The U.S. has eased some sanctions on Venezuela's oil sector, facilitating U.S. companies' ability to sell Venezuelan crude [7]