Oil Prices Ease After U.S. Temporarily Allows Countries to Purchase Russian Crude
NEW DELHI — Global oil prices edged lower Friday after the United States issued a temporary waiver allowing countries to purchase Russian oil that is already in transit, easing immediate supply concerns in global markets.
Brent crude was trading at $99.99 per barrel, down 0.47%, while West Texas Intermediate crude fell 0.67% to $95.09 per barrel.
U.S. Treasury Secretary Scott Bessent said the move is intended to increase available supply in global markets by allowing countries to buy Russian oil shipments that are currently stranded at sea.
“To increase the global reach of existing supply, @USTreasury is providing a temporary authorisation to permit countries to purchase Russian oil currently stranded at sea,” Bessent said in a post on X.
“This narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government, which derives the majority of its energy revenue from taxes assessed at the point of extraction,” he added.
Bessent said the recent rise in oil prices represents a temporary disruption that could ultimately benefit the U.S. economy in the longer term.
Under the waiver, the authorization applies only to Russian-origin crude oil and petroleum products that were loaded onto vessels on or before 12:01 a.m. Eastern Daylight Time on March 12.
Earlier this week, the United States also announced the release of 172 million barrels of oil from its Strategic Petroleum Reserve in an effort to stabilize global supply.
Meanwhile, the Indian government said the country’s crude oil supply remains secure despite disruptions linked to tensions around the Strait of Hormuz.
Before the crisis, roughly 45% of India’s crude imports passed through the Hormuz route. Authorities said India has since secured alternative supply volumes that exceed what would normally have arrived through the disrupted shipping corridor.
Union Petroleum and Natural Gas Minister Hardeep Singh Puri said non-Hormuz sources now account for about 70% of India’s crude imports, up from around 55% before the conflict began.
India currently imports crude oil from about 40 countries, compared with 27 in 2006–07, reflecting what officials describe as a long-term strategy to diversify energy supply sources.
Officials also said domestic refineries are operating at high capacity levels, in some cases exceeding 100% utilization, to ensure stable fuel supply. (Source: IANS)
