Reliance Industries Ltd. has received a licence from the United States to buy crude oil from Venezuela. The company can legally buy Venezuelan oil through this licence because United States regulations permit such transactions.
Opportunity for Lower‑Cost Oil
The licence enables Reliance to bring Venezuelan crude oil into the country at reduced expense. The pricing of Venezuelan heavy crude results in lower costs for Reliance because it sells at a discount to international oil prices.
Other Traders Have Permission
Many international oil traders have already been granted permission to trade Venezuelan oil. The traders hold US-issued licences which enable them to buy and sell Venezuelan crude.
First Private Indian Company to Get Licence
The US licence marks the first time that Reliance becomes the first private company from India to receive this permit. The company has not yet made an official public announcement about the licence.
US Sanctions and Recent Changes
The US government established sanctions against Venezuela's oil sector which restricted all direct oil exports from that nation. The United States has recently relaxed these sanctions to permit additional buyers into the Venezuelan oil market.
Reliance’s Past Oil Imports from Venezuela
Reliance used to purchase Venezuelan crude oil until 2019 when the United States imposed sanctions. The company had paused direct imports when US restrictions tightened. The new licence now makes direct purchases possible again.
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