India's cut Russian oil: Senator; Trump says Modi knew 'I was not happy' ('CAN RAISE TARIFFS QUICKLY'), Pg1

Key Highlights:

• US Senator Lindsey Graham stated that Indian Ambassador Vinay Kwatra informed him about India reducing Russian oil purchases.
• Graham was asked to request President Donald Trump to "relieve the tariff" imposed on India.
• Trump indicated India's Prime Minister Narendra Modi was aware of his displeasure regarding India's Russian oil purchases.
• The US intervention in Venezuela on January 3, 2026, has the potential to stabilize its oil sector.

Detailed Insights:

• The US is considering imposing tariffs on countries still buying Russian oil, while India has started reducing its Russian oil imports after the imposition of 25% tariffs.
• The US intervention in Venezuela could lead to Venezuelan crude oil becoming available to Indian refineries in the medium to long term.
• Venezuelan crude is primarily heavy to extra-heavy, which can only be processed by a few Indian refineries like Reliance Industries (RIL) and Nayara Energy (NEL).
• Easing sanctions on Venezuela could allow Venezuelan oil to flow more freely into the international market, offering India a politically acceptable diversification option.
• Increased Venezuelan crude imports are expected to increase India’s negotiating leverage with its traditional West Asian oil suppliers.
• Recovery in Venezuela would improve feedstock optionality, enhance procurement flexibility, and strengthen India’s negotiating leverage with other suppliers.

Key Concepts Involved:

• Tariff: A tax or duty imposed on goods when they are moved across a political boundary.
• Crude Oil: Unrefined petroleum, a naturally occurring, unprocessed liquid.
• Sanctions: Commercial and financial penalties applied by one or more countries against a targeted country, group, or individual.