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US Allows Russian Oil Stranded at Sea to Ease Global Energy Market Pressure

The United States Treasury Department has issued a temporary authorization allowing countries to purchase Russian oil that is already in transit and stranded at sea. This measure is designed to increase global oil supply and stabilize markets disrupted by geopolitical tensions in the Middle East. US Treasury Secretary Scott Bessent stated the move is narrowly tailored to oil already in transit and will not provide significant financial benefit to the Russian government. The announcement comes as benchmark Brent crude prices remain elevated, trading around $100 per barrel, which is about 35% higher than pre-war levels.

Key Points: US Allows Purchase of Stranded Russian Oil to Ease Markets

  • Temporary US authorization for stranded Russian oil
  • Aimed at easing global supply pressure
  • Geopolitical tensions in West Asia disrupt markets
  • Oil prices surged toward $120 per barrel
3 min read

US allows countries to buy Russian oil stranded at sea to ease energy markets amid West Asia crisis

US Treasury issues temporary authorization for countries to buy Russian oil stranded at sea to stabilize global energy markets amid Middle East tensions.

"To increase the global reach of existing supply, @USTreasury is providing a temporary authorization to permit countries to purchase Russian oil currently stranded at sea. - Scott Bessent"

Washington DC, March 13

The United States has allowed countries to purchase Russian oil currently stranded at sea in a temporary move aimed at easing pressure in global energy markets following disruptions caused by the West Asia crisis.

According to Scott Bessent, US Treasury Secretary, the decision is part of efforts by the administration of Donald Trump to stabilise global oil markets and contain rising fuel prices.

In a social media post, Bessent said the measure would help increase the global availability of oil supply amid geopolitical tensions affecting energy markets.

"@POTUS is taking decisive steps to promote stability in global energy markets and working to keep prices low as we address the threat and instability posed by the terrorist Iranian regime," Bessent said.

He added that the United States Department of the Treasury has issued a temporary authorisation allowing countries to buy Russian oil that is already in transit and currently stranded at sea.

"To increase the global reach of existing supply, @USTreasury is providing a temporary authorization to permit countries to purchase Russian oil currently stranded at sea," he said.

Bessent clarified that the move is narrowly tailored and will apply only to oil shipments that are already in transit.

"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 said.

The announcement comes as global crude oil prices remain elevated due to escalating geopolitical tensions, particularly in the Middle East, which have raised concerns over disruptions to energy supply routes.

Benchmark Brent crude oil prices briefly surged toward USD 120 per barrel, marking a multi-year high amid fears that conflicts in the region could threaten oil supplies.

The surge in prices reflects intense geopolitical tensions in the Middle East that are affecting the stability of global energy markets.

Currently, crude oil prices are trading around USD 100 per barrel, which is approximately 35 per cent higher than pre-war levels.

Bessent also highlighted that the US administration's energy policies have contributed to strong domestic oil and gas production.

He said that President Trump's pro-energy policies have helped push US oil and gas output to record levels, which in turn has supported lower fuel prices for consumers.

"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," Bessent said.

- ANI

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Reader Comments

P
Priya S
Interesting how the rules change when it suits the West. First, they impose sanctions and pressure others to stop buying Russian oil. Now they're allowing it to "stabilise markets." It feels like a policy U-turn for their own benefit. What about the principle behind the sanctions?
A
Aman W
From an Indian perspective, we've been buying Russian oil at a discount anyway. This US move might reduce the discount we get, but if it increases overall supply, it should help. Our government's diplomacy has ensured our energy security so far. Jai Hind!
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Sarah B
As someone living in India, I just hope this brings down prices at the pump. The constant volatility in West Asia affects us all. A temporary, practical solution is better than rigid ideology when common people are suffering.
V
Vikram M
The US says this won't provide significant financial benefit to Russia. That's hard to believe. Money is money. It seems like geopolitical convenience overrides stated goals. However, for India's growing economy, stable and affordable energy is non-negotiable.
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Kavya N
This highlights the need for India to be truly self-reliant in energy. We must accelerate our transition to renewables and boost domestic exploration. Relying on global market whims is not a long-term strategy for a nation of 1.4 billion.

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