US Asked India to Buy Russian Oil to Stabilize Markets Amid Iran Conflict, Energy Secretary Says
WASHINGTON — The United States asked India to purchase Russian oil cargoes that had been waiting to unload at Chinese refineries as part of an effort to stabilize global energy markets during the ongoing conflict with Iran, U.S. Energy Secretary Chris Wright said Sunday.
In an interview with CNN, Wright said the Trump administration reached out directly to India as part of a short-term strategy to calm oil markets unsettled by disruptions in the Middle East.
“I did call up the Indians, as did US Treasury Secretary Scott Bessent, and say, look, there’s a whole bunch of oil that’s floating to wait to unload at Chinese refineries,” Wright said.
“Instead of having it wait six weeks to unload there, let’s just pull that oil forward, have it land at Indian refineries and tamp this fear of shortage of oil, tamp the price spikes and the concerns we see in the marketplace,” Wright said.
Wright said the move was intended to quickly bring additional crude supplies into global markets and prevent further spikes in oil prices triggered by the war with Iran.
“It’s just a pragmatic effort that has a short time span,” he said.
The energy secretary emphasized that Washington’s broader policy toward Russia remains unchanged despite the temporary flexibility extended to India.
“It is not. The United States’ policy towards Russia has not changed at all,” Wright said when asked whether the move undermined the administration’s efforts to reduce reliance on Russian oil.
He added that India had already shifted much of its energy sourcing away from Russian crude.
“India is very clear on that. They had displaced all Russian oil imports. And they were raising their imports from the United States, from Venezuela, and other nations. India’s been a great partner through this,” Wright said.
Wright said the administration’s immediate priority is stabilizing global oil supplies as the conflict with Iran disrupts tanker traffic through the Strait of Hormuz.
“The world is very well supplied with oil right now,” he said. “You’re seeing a little bit of fear premium in the marketplace. But the world is not short of oil today or natural gas.”
The Strait of Hormuz, through which about 20 percent of global oil shipments normally pass, has experienced significant disruption since the conflict began, raising concerns about supply shortages and sharp increases in energy prices.
Wright said some tanker traffic has resumed but shipping levels remain well below normal.
“We’re nowhere near normal traffic right now. And that’ll take some time,” he said.
“But, again, worst case, that’s a few weeks. That’s not months.” (Source: IANS)
