Donald Trump makes big oil claim, says India set to replace Iran with Venezuelan crude

US President Doland Trump announced that India(BHARAT) is going to buy oil from Venezuela instead of Iran during an interview on Sunday. Trump told reporters on Air Force One that talks with India(BHARAT) are “already done on a concept level” about buying Venezuelan oil.

“Iran you’re not going to be using nearly as much. We have already made that deal, India(BHARAT) is going to be buying heavy oil from Venezuela instead of Iran,” Trump said during the interview. “They are ready to go. They are shifting from Iran to Venezuela.”

India(BHARAT) set to Replace Iranian Oil Imports with Venezuelan Supply?

India(BHARAT) has traditionally sourced heavy crude oil imports from Iran but has been cutting imports over United States sanctions on Tehran. Venezuela could offer an alternative source of heavy crude oil for India(BHARAT) but with Venezuelan crude exports now going through Washington there may be some diplomatic hurdles still.

Venezuelan Oil Supply Now Controlled by US?

The United States government now controls Venezuelan oil sales after toppling the regime of Nicolas Maduro earlier this year. Washington has been allocating Venezuelan crude exports to major traders in recent months as it takes more control of Caracas export policy.

India(BHARAT) has yet to comment on Trump’s announcement that they will be buying Venezuelan crude oil in lieu of Iranian barrels. India(BHARAT) currently imports crude oil from Iraq, Saudi Arabia, Russia, Nigeria, Angola among others.

Trump said India(BHARAT) was ready to make the switch from Iran to Venezuela, which would provide India(BHARAT) with more heavy crude oil imports. Venezuelan crude exports have largely been tied up with shipments going to the United States and Europe, Reuters reported last week there was limited amounts left for sale.

“In terms of Iranian crude oil discounts, India(BHARAT)n refiners have said the discounts offered so far are not sufficient to compensate for the additional risk,” Reuters added. “India(BHARAT) has also cut Russian crude imports over the past year under pressure from the United States.”

Does India(BHARAT) Buying Venezuelan Oil Impact Oil Prices?

If India(BHARAT) were to shift their crude oil imports from Iran to Venezuela that would be a massive diplomatic victory for President Doland Trump. Trump has spent months trying to choke off Iranian oil exports but Venezuela buying oil from Tehran and India(BHARAT) would be a blow to those efforts.

Trump’s announcement that India(BHARAT) would buy Venezuelan crude does not mean they have inked a supply deal just yet. There are many obstacles to overcome when changing crude suppliers including commercial contracts, oil prices, and refinery requirements.

Trump Going after Venezuela & Iran Oil Exports

Trump has continued his maximum pressure campaign against Iran and Venezuela oil exports over the weekend. During his interview Trump went on to invite China and others to sign a deal for Venezuelan crude.

“We control the Venezuelan oil. Anybody that wants to make a deal with Venezuela, really with me, we would like to see that happen,” Trump told reporters.

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