Venezuela Oil Sanctions Lift: Will India Get Cheaper Crude? Global Impact Looms

• Lifting US sanctions on Venezuela's vast oil reserves could offer Indian companies like Reliance and ONGC Videsh significant benefits, including cheaper crude and release of stuck dividends.
• Venezuela holds the world's largest proven oil reserves but production is severely low (8.60 lakh bpd) due to mismanagement and sanctions, down from 3.5 million bpd in the 1970s.
• Rebuilding Venezuela's dilapidated oil infrastructure requires massive investment, estimated at $10 billion annually for a decade, with US companies playing a crucial role.
• Indian refiners like Reliance could secure Venezuelan heavy crude at a $5-8/barrel discount to Brent, boosting Gross Refining Margins due to their complex refinery capabilities.
• Increased Venezuelan supply could push global Brent crude prices below $60/barrel in the long term, benefiting import-dependent nations like India and ending China's discounted oil monopoly.

Why It Matters: Lifting Venezuelan oil sanctions promises cheaper crude for India, global price drops, and massive infrastructure investment.