The energy map of the world just got a major rewrite. As of Friday, January 9, 2026, the Trump administration has officially given the “green light” for India to resume buying Venezuelan oil.1
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The thing is, this isn’t just a friendly trade deal—it’s a masterstroke of leverage. After the US military captured President Nicolás Maduro on January 3, Washington has effectively seized control of Caracas’s oil spigot.2 Or nothing. Let’s be real, Trump is essentially telling India: “Buy oil from our new Venezuelan branch so you can stop buying from Russia.”3 Those too.
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The “Oil Reset” Log: Field Notes
It’s an ongoing situation where the US is now acting as the world’s biggest oil broker for a country it currently occupies.
The “US-Only” Store: Energy Secretary Christopher Wright made it clear—the US government is now the marketing agent.4 The crude is “sold” by the US, the money goes into US-controlled Treasury accounts, and Venezuela only gets it back if they spend it on “American-made goods.”5
The India Angle: India used to be one of the top buyers of this heavy crude before the 2019 sanctions.6 Our refineries (looking at you, Reliance Jamnagar) are actually designed to process this specific thick, “sludgy” Venezuelan oil.7
The “Kicker”: This offer comes just as the US is threatening India with 500% tariffs under the “Sanctioning Russia Act of 2025” if New Delhi doesn’t stop the Russian trade.8 It’s the ultimate “carrot and stick.”
The Inventory: Washington is sitting on 30–50 million barrels of stored crude that they want to move “indefinitely.”9
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Venezuelan Oil: The New Trade Framework
[Table: The “US-Controlled” Deal]
| Feature | The New Rules (Jan 2026) |
| Sales Agent | United States Department of Energy (not PDVSA) |
| Revenue Control | Funds settle in US-controlled banks |
| Spending Limit | “Only American Made Products” (Agri, Meds, Grid Tech) |
| Volume Available | 30-50 Million Barrels (Initial) |
| Target Buyers | India, Europe, and Asia |
And Here’s the Kicker…
While the White House says “Yes” to India, there’s a massive catch. The thing is, Reliance Industries has already hinted they’ll only bite if they are allowed to sell the refined products to non-US buyers.10
Meanwhile, India is also eyeing nearly 1 billion in stuck dues from its ONGC Videsh projects in Venezuela.11 If the US “cleans up” the sector, India might finally get its money back—but it means moving away from the cheap Russian Ural crude that has fueled the Indian economy for the last three years. It’s an ongoing situation where energy security is becoming a high-stakes game of musical chairs.
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End…
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