Venezuela to Supply Third Largest Crude Oil to India This Month

Following the end of the Iran war and the closure of the Hormuz Strait, there is a growing pursuit for alternative energy sources. Venezuela emerges as a key player, expected to supply approximately 50% more oil to India this month, according to energy supply monitoring data. Venezuela's Acting President Delcy Rodriguez is anticipated to visit India in the coming week to discuss oil sales, as revealed by American Secretary of State Marco Rubio. With an estimated oil reserve of around 303 billion barrels, Venezuela holds approximately 17% of the world's known oil resources, surpassing reserves held by Saudi Arabia and the United States. However, Venezuela's oil production weakened due to American sanctions and internal governance challenges in recent years. The Washington administration, following the abduction of former President Nicolas Maduro by US forces in January, has imposed control over Venezuela's oil industry. This has sparked a renewed interest in Venezuelan oil in the global market. Amidst the escalating tensions in the Middle East due to the US-Israel war on Iran, India has increased its purchase of Russian oil, causing discontent in the US as it believes these revenues may support Russia's involvement in the Ukraine conflict. Prime Minister Narendra Modi had previously expressed commitments to halt the purchase of Russian oil in February, aligning with a pledge to buy oil from the US and Venezuela instead. American Secretary of State Rubio, who is scheduled to visit India for trade, defense cooperation, and energy security talks from May 23 to 26, now aims to persuade India to adopt this stance. Rubio stated, "We want to sell as much energy as they want to buy." He added, "We see an opportunity in Venezuelan oil as well. In fact, according to my understanding, Venezuela's interim President is also expected to visit India in the coming week." Analysts suggest that Washington is exploring a restructuring of the global energy supply network. This strategy aims to reduce Iran's influence and simultaneously strengthen Venezuela's control over its oil sector, particularly in light of the current global energy crisis.