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US Waiver Frees 20M Barrels of Russian Oil, May Cool Soaring Prices

The US Treasury has issued a temporary waiver allowing the purchase of approximately 20 million barrels of Russian crude oil currently stranded at sea. This measure is designed to increase global supply and help cool prices that have surged past $100 per barrel. The license is narrowly tailored, applying only to shipments loaded by March 12 and authorized until April 11, aiming to minimize financial benefit to Russia. The move comes amid escalating conflict in the Middle East, where Iran's new leader has threatened to shut the vital Strait of Hormuz.

Key Points: US Waiver Frees Russian Oil, Aims to Cool Global Prices

  • US issues temporary oil waiver
  • Frees 20M barrels of Russian crude
  • Aims to cool prices above $100/barrel
  • Applies only to oil already in transit
  • Iran war threatens key oil chokepoint
2 min read

US waiver frees almost 20 million barrels of Russian oil for sale

A US waiver allows the sale of 20M barrels of stranded Russian crude, aiming to increase supply and cool prices above $100 amid Middle East tensions.

"This narrowly tailored, short-term measure... will not provide significant financial benefit to the Russian government - Scott Bessent"

New Delhi, March 13

The US waiver for buying seaborne Russian crude has immediately freed another 20-odd million barrels of oil on board ships which is expected to cool runaway prices that have crossed the $100 per barrel mark in the global market amid the Iran war.

There are currently around 25 ships carrying Russian crude at sea while another five ships are carrying petroleum products. These can be diverted immediately to destinations from where the demand emanates.

The temporary waiver comes on top of the 30-day waiver earlier announced by the Trump administration for Indian refiners to buy Russian oil aimed at making more crude available in the market to bring down prices.

India and China have been the main buyers of Russian crude until now which has helped to control global prices as the two countries are among the largest importers of oil.

The Trump administration on Thursday issued a new license allowing countries to temporarily purchase certain Russian oil products.

"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," Treasury Secretary Scott Bessent wrote on social media.

"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."

The license, posted to the US Treasury site, only applies to Russian crude or petroleum products loaded on vessels as of March 12. The license authorises those shipments till April 11.

The announcement also comes at a time when the new leader of Iran has announced plans to shut the Strait of Hormuz, through which 20 per cent of the world's oil exports transit.

The Iran war has now entered its second week with a continued escalation in missile and drawn attacks which have also targeted oil infrastructure in the Middle East countries and commercial ships operating in the region.

- IANS

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Reader Comments

P
Priyanka N
Interesting timing. The US pushes for sanctions, then issues waivers when prices spike. It shows how interconnected the global market is. India and China buying Russian oil did help stabilize things. Hope this brings some relief at the pump soon. 🙏
A
Aman W
The real concern is Iran threatening the Strait of Hormuz. 20% of global oil passes through there! If that shuts, even this waiver won't help. The geopolitical situation is very volatile. India needs to focus on its strategic reserves and diversify sources.
S
Sarah B
While I understand the need for affordable energy, we must be cautious. The waiver says it won't provide "significant financial benefit" to Russia, but any revenue helps fund their war machine. There's a moral dimension here that's being sidelined for economics.
V
Vikram M
Good step. At the end of the day, India's energy security and controlling inflation for 1.4 billion people is the top priority. We have to be pragmatic, not ideological. This temporary measure makes sense to ease the immediate supply crunch.
K
Karthik V
The article mentions 25 ships at sea. That's a lot of oil suddenly available. Should help refineries plan better. Hope the benefit is passed on to consumers and not just absorbed by oil marketing companies. We need transparency in pricing.

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