(Image source from: Moneycontrol.com)
The United States has granted a general permit to Reliance Industries Ltd, allowing the refinery to acquire Venezuelan oil directly without breaching restrictions, according to two knowledgeable sources. After the recent capture of Venezuelan President Nicolas Maduro by the US earlier this month, American officials stated that they would lighten the restrictions placed on Venezuela's oil sector to support a $2 billion oil supply agreement between Caracas and Washington, along with a significant $100 billion plan to rebuild the nation's oil industry. A general permit allows for the purchase, export, and sale of oil from Venezuela that has already been extracted, including the processing of that oil. Granting a permit to Reliance may accelerate the export of Venezuelan oil and lower crude prices for the operator of the largest refining facility in the world.
Reliance, which sought the permit in early January, did not reply to an email asking for comments. The US Office of Foreign Assets Control did not respond immediately outside of normal working hours. Earlier this month, Reliance acquired 2 million barrels of Venezuelan oil from trader Vitol, which, along with Trafigura, received US permits to trade and sell substantial amounts of Venezuelan oil following Maduro's capture. Buying oil directly from Venezuela will allow Reliance to replace Russian oil more affordably, as heavy crude from Caracas is available at a lower price, according to one of the sources. President Donald Trump recently lifted a 25% extra tax on India and mentioned that New Delhi would likely purchase more oil from the US and possibly from Venezuela.
Indian oil refiners, including Reliance, are steering clear of purchasing Russian oil scheduled for delivery in April and are anticipated to continue avoiding such transactions for the foreseeable future, according to refining and trade sources, which could assist New Delhi in establishing a trade agreement with Washington. The conglomerate had previously been a regular purchaser of Venezuelan oil for its modern refining complex but was forced to halt purchases in early 2025 due to US restrictions. Reliance runs two refineries with a total capacity of around 1.4 million barrels a day.
