global Trade Research Initiative (GTRI) said that the US-Venezuela dispute will not have much impact on India’s trade with Venezuela. The US military carried out a major military operation in Venezuela on January 4, arresting President Nicolas Maduro and his wife and taking them to the US. GTRI Founder Ajay Srivastava said that for India, it will not have any major impact on the economic or energy sector, as India-Venezuela trade has already reduced significantly due to US sanctions.
Crude oil imports from Venezuela decreased by 81.3 percent
Ajay Srivastava said that in the financial year 2024-25, India’s import of crude oil from Venezuela declined by 81.3 percent to $ 2.55 billion, while the total trade also remained at a nominal level. India’s export of medicines and other products to Venezuela stood at $95.3 million. He said that trade between India and Venezuela is decreasing. American sanctions and reduction in business activities are the main reasons behind this. He also said that given the low trade, tight sanctions and large distance, the recent developments in Venezuela will not have any major impact on India’s economy or energy security.
Crude oil prices once again in discussion
Crude oil prices have once again become a topic of discussion after the US action against Venezuela and President Donald Trump’s statement that he will take control of Venezuela’s oil sector. The development has already changed the mood in global crude oil markets and will determine how Indian equities, rupee and energy stocks will trade when markets open on Monday. Analysts said the US action has added new geopolitical risk to oil prices.
Venezuela has the world’s largest oil reserves
Venezuela has the world’s largest oil reserves of 303 billion barrels, which is more than Saudi Arabia. But Venezuela’s oil production has fallen sharply due to years of poor management, underinvestment and sanctions. Analysts said Venezuela’s production is unlikely to increase immediately given poor infrastructure and unresolved legal issues, but a US-led sector reform could eventually increase supply to the global market, which would stabilize prices.
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