President Donald Trump has publicly expressed a willingness to facilitate China’s participation in purchasing Venezuelan oil, suggesting that a mutually beneficial agreement could be reached. Speaking aboard Air Force One, Trump remarked, "China is welcome to come in and would make a great deal on oil," signaling potential shifts in the U.S. stance toward Venezuela’s oil sector amid ongoing geopolitical complexities.
In addition to China, Trump cited India as an active player entering this market, stating, "India is coming in" and is poised to acquire Venezuelan oil supplies. He further noted that India’s purchases from Venezuela would replace some Iranian crude imports, mentioning, "We’ve already made that deal, the concept of the deal." This comment underscores evolving dynamics in global oil supplies shaped by sanctions and bilateral agreements.
This announcement follows previous U.S. measures, notably the imposition of a 25% tariff in March targeting countries continuing to procure Venezuelan oil. These punitive tariffs led India to halt its Venezuelan crude transactions earlier in the year. The latest statements suggest a possible adjustment or evolution in policy toward Venezuelan oil trade.
Strategic Importance of Venezuelan Ultra-Heavy Crude for China
Venezuelan crude is characterized by ultra-heavy hydrocarbon content, specifically C50+ fractions, which are integral for producing durable asphalt. These ultra-heavy components differ markedly from conventional fuel oils, serving unique industrial needs. According to analysis by the Collapse Intelligence Agency, China imports approximately 2 million barrels per day of asphalt-rich crude via sanctioned channels, with Venezuelan crude accounting for roughly 500,000 barrels daily. This volume satisfies over half of China’s asphalt requirements.
The reliance on Venezuelan heavy crude provides China with an essential blending agent that enhances pavement durability. In the absence of these additives, the quality of Chinese asphalt deteriorates, resulting in a brittle and short-lived material. This dependency affords the United States strategic leverage by controlling access to a resource that China finds challenging to substitute, thereby influencing global infrastructure supply chains indirectly.
India's Shifting Oil Sourcing Amid U.S. Influence
The evolving oil trade involving India must be understood against the backdrop of recent market developments and political pressures. Notably, in November 2025, Reliance Industries, led by India’s wealthiest businessman Mukesh Ambani, ceased importing Russian crude for its Jamnagar refinery, an export-focused facility. This action coincided with U.S.-imposed sanctions against Russian oil entities and the implementation of 50% tariffs on Indian imports, suggesting considerable U.S. influence on Indian procurement decisions.
Although President Trump indicated that India would substitute Iranian crude with Venezuelan oil, India’s history shows it halted Iranian oil imports in 2019 due to U.S. sanctions linked to Tehran’s nuclear activities. Following that shift, Indian refiners increased acquisitions of U.S. crude, subsequently declining those volumes and eventually emerging as the largest purchaser of discounted Russian seaborne oil after Western sanctions were applied following Russia’s 2022 military actions in Ukraine.
Treasury Secretary Scott Bessent remarked in January that the additional 25% tariff imposed on Indian goods might be reconsidered, referencing a significant decline in India’s Russian oil imports. This hint points to ongoing recalibrations in response to fluctuating trade and geopolitical conditions.
Chevron’s Continued Commitment in Venezuelan Operations
In light of U.S. policy shifts, some sanctions on Venezuela’s oil sector have been relaxed, permitting American firms greater ease in selling Venezuelan crude. Despite President Trump’s calls for amplified investment in Venezuela, Chevron Corporation (NYSE: CVX) has opted to maintain its existing capital expenditure levels within the country.
Chevron CEO Mike Wirth emphasized the company’s intention to sustain collaboration with both U.S. and Venezuelan authorities to align on common energy objectives. This stance indicates Chevron’s ongoing operational interests in Venezuela, predicated on longstanding business ties and strategic considerations.
Conclusion
The interplay among key global players in the Venezuelan oil market—highlighted by President Trump’s openness toward China’s engagement and India’s shifting import patterns—reflects a complex nexus of geopolitical strategy and energy trade dynamics. The unique characteristics of Venezuelan ultra-heavy crude position the resource as strategically significant, especially for China’s infrastructure applications. Meanwhile, the responses of major actors such as India and Chevron embody the multifaceted impact of U.S. sanctions and international diplomatic maneuvers on global energy supply chains.