Trump Welcomes China To 'Make A Great Deal' On Venezuelan Oil, Suggests India Is Already 'Coming In'

President Donald Trump has revealed that China could potentially strike a deal with the U.S. to purchase Venezuelan oil.

“China is welcome to come in and would make a great deal on oil,” Trump stated while aboard Air Force One on Saturday.

Trump also suggested “India is coming in” and will be purchasing oil from Venezuela, replacing some of its Iranian imports.

“We’ve already made that deal, the concept of the deal,” stated the President.

This decision comes after Trump imposed a 25% tariff on countries buying Venezuelan oil in March, which led India to halt its purchases from Caracas.

Venezuela's Crude: China's Growth Key

Venezuelan crude contains ultra-heavy C50+ hydrocarbons that are crucial for making durable asphalt, not conventional fuels. According to the Collapse Intelligence Agency, China imports about 2 million barrels per day of asphalt-rich oil through sanctioned routes, including roughly 500,000 bpd from Venezuela, enough to supply over half of China's daily asphalt needs.

Without Venezuelan heavy crude as a blending additive, Chinese asphalt quality deteriorates, making it more brittle and short-lived, giving the U.S. strategic leverage by controlling access to a resource China struggles to replace.

India's Oil Pivot Amid U.S. Pressure

This announcement is significant in the context of recent developments in the global oil market. In November 2025, India’s richest man, Mukesh Ambani-led Reliance Industries, halted Russian crude imports into its export-only Jamnagar refinery. This move was seen as a response to U.S. political pressure, as it coincided with Trump’s sanctions on Russian oil giants as well as 50% tariffs on India.

While, Trump claimed India would switch to Venezuelan oil from Iranian crude, the Narendra Modi-led country halted Iranian oil imports in 2019 due to U.S. sanctions over Tehran's nuclear program. Indian refiners then turned to U.S. oil, later reduced those purchases, and eventually became the largest buyer of discounted Russian seaborne oil after Western sanctions on Moscow following its 2022 invasion of Ukraine.

Treasury Secretary Scott Bessent said in January that the extra 25% tariff on Indian goods may be lifted, citing a sharp drop in India's imports of Russian oil.

Chevron Keeps Spend Level in Venezuela

Meanwhile, the U.S. eased some sanctions on Venezuela's oil sector, allowing U.S. companies to more easily sell Venezuelan crude.

Nevertheless, despite Trump’s call for increased investment, Chevron (NYSE:CVX) has decided to maintain its current level of capital spending  in the Latin American country. However, CEO Mike Wirth stated that the company would keep working with both the U.S. and Venezuelan governments to pursue common energy goals, highlighting its long-standing ties to Venezuela.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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