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US Eases Russian Oil Ban, Global Crude Prices Dip Slightly

Global oil prices cooled slightly after the US Treasury announced a 30-day waiver allowing countries to purchase Russian oil already in transit. US Secretary of the Treasury Scott Bessent stated the measure is narrowly tailored and will not provide significant financial benefit to the Russian government. Meanwhile, India's Union Minister Hardeep Singh Puri confirmed the country's crude supply is secure, with volumes secured exceeding what the disrupted Hormuz route would have delivered. India has diversified its sourcing, with non-Hormuz crude now making up approximately 70% of its imports.

Key Points: US Allows Russian Oil Purchases, Crude Prices Cool

  • US issues 30-day waiver for Russian oil
  • Brent crude trades near $100 per barrel
  • India secures crude exceeding Hormuz volumes
  • Non-Hormuz sourcing now 70% of India's imports
  • Refineries operating at high capacity
2 min read

Crude prices cool down as US allows all countries to buy Russian oil

US grants 30-day waiver for Russian oil purchases, easing prices. India secures supply, diversifies sources away from Hormuz Strait.

"This narrowly tailored, short-term measure applies only to oil already in transit - Scott Bessent"

New Delhi, March 13

Global oil prices cooled down marginally on Friday after the US announced a 30-day waiver, allowing all countries to purchase Russian oil.

Brent crude was trading at $99.99 per barrel, down 0.47 per cent, while West Texas Intermediate (WTI) dropped 0.67 per cent to $95.09 per barrel.

US Secretary of Treasury, Scott Bessent, said on X that "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".

"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," Bessent posted.

The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term, he added.

The US waiver applies to Russian-origin crude oil and petroleum products loaded on vessels - on or before 12:01 am Eastern Daylight Time on March 12.

On Wednesday, the US announced the release of 172 million barrels from its strategic petroleum reserves.

Meanwhile, the Indian government said that crude supply position is secure, and volumes secured exceed what Hormuz would have delivered.

Before this crisis, approximately 45 per cent of India's crude imports transited the Hormuz route.

Now, India has secured crude volumes that exceed what the disrupted Strait route would have delivered in the same period. Non-Hormuz sourcing has risen to approximately 70 per cent of crude imports, up from 55 per cent before the conflict began, informed Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri.

India sources crude from 40 countries, against 27 in 2006-07; this structural diversification, built through sustained policy over successive years, "has given us options that other nations now find themselves without".

Refineries are operating at high capacity utilisation; in several cases, they are exceeding 100 per cent, said Puri.

- IANS

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Reader Comments

P
Priya S
This US waiver feels like a temporary fix. The real story here is India's foresight. Sourcing from 40 countries! That's strategic depth no one can take away. Hope this translates to stable petrol and diesel prices soon. My monthly budget is stretched thin.
R
Rohit P
Refineries at over 100% capacity? That's impressive efficiency. But let's be honest, the price drop is just 0.47%. We need it to fall much more for any real relief at the pump. The US is managing the global market for its own benefit, as always.
M
Michael C
Interesting move by the US Treasury. Releasing reserves and allowing this purchase seems designed to prevent a spike. Good for global stability. India's proactive diversification is a case study for other import-dependent nations.
S
Shreya B
While the strategic moves are good, I respectfully think the government should communicate the direct impact on common people more clearly. "Secure supply" is one thing, but when will we see cheaper LPG cylinders? That's what matters in my kitchen.
K
Karthik V
This shows why we need strong diplomacy and multiple options. You can't put all your eggs in one basket, especially with something as critical as oil. Bhai, $99.99 is still too high! Bring it down to $80 at least. 🙏

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