US Grants 30-Day Waiver for Stranded Russian Oil Purchases
On Thursday, the United States unveiled a 30-day waiver permitting nations to acquire sanctioned crude oil and petroleum products from Russia that are currently stranded at sea. This move aims to alleviate the pressure of crude oil prices, which are lingering around $100 per barrel, amidst the ongoing conflict involving the US, Israel, and Iran. The waiver permits the delivery and sale of Russian oil that was loaded onto vessels prior to March 12, and will remain in effect until April 11, as stated in an order from the Office of Foreign Assets Control of the US Treasury Department.
“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,” US Treasury Secretary Scott Bessent stated in a message shared on the social media platform X. He stated that the US is actively engaged in efforts to promote stability in global energy markets and maintain control over crude oil prices. Earlier this month, the US issued a similar 30-day waiver on March 5, permitting India to purchase Russian oil. Following this, India significantly increased its imports.
Maritime intelligence reports that India has acquired approximately 1.63 million barrels per day of Russian crude oil in March to date. As of early March, approximately 130 million barrels of Russian crude were adrift at sea, encompassing cargoes in the Indian Ocean, the Red Sea, the Suez shipping routes, and waters near Singapore. The action taken by the administration of US President Donald Trump occurs against the backdrop of rising global energy prices, driven by the intensifying conflict in West Asia, while the United States is also nearing its mid-term elections.
In a separate announcement, the US has revealed the release of 172 million barrels of crude oil from its strategic petroleum reserves. This move aligns with a wider initiative by the International Energy Agency to release a total of 400 million barrels of oil aimed at alleviating global crude prices. Earlier this week, the IEA stated that the ongoing war in West Asia has resulted in one of the largest oil disruptions in history.
