President Donald Trump extended an unusual invitation to China on Saturday: come negotiate a deal to buy Venezuelan oil. Speaking aboard Air Force One, Trump said China "is welcome to come in and would make a great deal on oil." He also claimed India is already on board, suggesting the country "is coming in" to purchase Venezuelan crude as a replacement for Iranian imports.
"We've already made that deal, the concept of the deal," Trump stated, though the details remain murky.
The timing is interesting considering Trump slapped a 25% tariff on countries buying Venezuelan oil back in March, which immediately prompted India to stop purchasing from Caracas. Now he's apparently reversing course and inviting countries back to the table.
Why Venezuelan Crude Matters To China
Here's where things get technical but important. Venezuelan crude isn't your standard oil—it contains ultra-heavy C50+ hydrocarbons that are essential for producing 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, with roughly 500,000 barrels per day coming from Venezuela. That's enough to supply over half of China's daily asphalt needs.
Without Venezuelan heavy crude as a blending additive, Chinese asphalt quality takes a hit—it becomes more brittle and doesn't last as long. This gives the U.S. meaningful strategic leverage by controlling access to a resource China can't easily replace.
India's Complicated Oil Shopping History
Trump's claim that India will switch to Venezuelan oil "from Iranian crude" glosses over some history. India actually halted Iranian oil imports way back in 2019 due to U.S. sanctions over Tehran's nuclear program. Indian refiners initially pivoted to U.S. oil, then scaled back those purchases, and eventually became the largest buyer of discounted Russian seaborne oil after Western sanctions on Moscow following its 2022 invasion of Ukraine.
The context matters here: In November 2025, Mukesh Ambani-led Reliance Industries halted Russian crude imports into its export-only Jamnagar refinery. That move was widely seen as a response to U.S. political pressure, coinciding with Trump's sanctions on Russian oil giants and 50% tariffs on India. Treasury Secretary Scott Bessent said in January that the extra 25% tariff on Indian goods might be lifted, pointing to a sharp drop in India's imports of Russian oil.
Chevron Not Rushing To Spend More
Meanwhile, the U.S. has eased some sanctions on Venezuela's oil sector, making it easier for American companies to sell Venezuelan crude. Despite Trump's push for increased investment, though, Chevron (CVX) has decided to keep its capital spending in Venezuela at current levels. CEO Mike Wirth said the company would continue working with both the U.S. and Venezuelan governments to pursue common energy goals, emphasizing Chevron's long-standing ties to the country.
So we're left with an interesting geopolitical chess game: Trump dangling Venezuelan oil access as a carrot to both China and India, while major U.S. energy companies take a more cautious approach. Whether these "concept deals" materialize into actual contracts remains to be seen.
