Can Reliance help bring Venezuelan oil back to market? Rubio says talks scheduled for Wednesday

US Secretary of State Marco Rubio said on Tuesday that he would hold discussions with Reliance Industries on Wednesday over the possibility of refining more Venezuelan crude oil in India. He described India as a "refining superpower" capable of helping ease global energy supply pressures.

Rubio, who arrived in India on Tuesday for a two-day visit, said Indian refiners had the technical capability to process Venezuela's heavy crude and could play a larger role as more oil from the South American country becomes available.

"They can, and we'll talk about that tomorrow with Reliance. They've done so in the past. They have the capability to refine heavy crude," Rubio said when asked whether Indian companies could refine more Venezuelan oil.

He said India's refining infrastructure could help address global energy challenges, particularly as conflicts disrupt supplies and highlight the importance of processing capacity. "And India's a refining superpower. They have the ability to do that. They have companies that know how to do that," Rubio said.

Rubio is scheduled to visit Reliance's Jamnagar refinery on Wednesday.

India's role in Venezuelan oil supply

Rubio said India's involvement could extend beyond refining imported crude, pointing to existing Indian investments in Venezuela's oil sector. "They also, by the way, have preexisting oil concessions in Venezuela that can produce more themselves," he said.

According to Rubio, Venezuela could contribute to easing energy supply pressures as its production increases, although it would not be able to offset all potential disruptions in global markets.

"I'm not claiming to you that Venezuela alone can fill the hole that could be caused by some of the things that are happening around the world, but I think over time, it most certainly can. And in the short term, it can certainly provide relief," he said.

The Secretary of State said Indian companies had previously expressed readiness to increase their involvement in Venezuelan crude processing. "We've talked about it in the past, and they sound ready. They are ready to do it. They're willing to do it," Rubio said.

However, he acknowledged that existing sanctions could complicate efforts to expand Venezuelan oil trade. "There might be a few impediments that stand in the way in terms of sanctions and so forth that we'll have to work through, preexisting sanctions elements that are already in place," he said.

India-US trade deal close to completion

Rubio also said India and the United States were close to finalising a trade agreement, with only a few outstanding issues remaining. "We're very, very close. I would say we're about as close as you can be without having executed the agreement," he said.

"I think there's a small number of items left to wrap up, so I think that will happen shortly," Rubio added, expressing hope that an announcement could be made soon, followed by a formal signing.

He described India as an important commercial, defence and strategic partner, citing its role in the Quad and the frequency of high-level exchanges between the two countries.

Earlier today, US Ambassador to India Sergio Gor thanked the Maharashtra government for hosting Rubio at Mumbai's Gateway of India.

"Thank you, @CMOMaharashtra, for hosting @SecRubio at the iconic Gateway of India. With 500+ American companies operating in Maharashtra and deep investment ties, I look forward to building on this legacy to expand trade, attract investment, and create new opportunities for our people," Gor wrote on X.