Washington: After the US-Israel war against Iran, there is a possibility of impact on the supply of fuel and energy across the world including India. Meanwhile, US Finance Secretary Scott Besant has said that America has issued a temporary exemption of 30 days, so that Indian oil refiners can buy Russian crude oil currently stranded in the sea. He described the move as a short-term measure to keep global oil supplies running amid disruptions related to the Middle East conflict.
“To keep oil flowing into the global market, the Finance Department is issuing a temporary 30-day moratorium to allow Indian refiners to buy Russian oil,” Besant said in a statement shared with XPost. “This deliberately short-term measure will not provide any significant financial benefit to the Russian government as it only allows transactions involving oil that is already stranded at sea.”
Besant described the waiver as a stopgap measure and indicated that the US expects India to buy more American crude. He said, “India is an important partner of America, and we are hopeful that New Delhi will increase its purchases of American oil. This temporary step will reduce the pressure created by Iran’s attempt to hold global energy hostage.”
According to media reports, Indian refiner companies have started buying millions of barrels of Russian crude oil for early delivery to ensure second supply amid the crisis in the Middle East. News agency Reuters, quoting sources, said that India’s government refiner companies are in talks with traders for Russian cargo arriving at Indian ports in March and early April. Sources said that Indian refiner companies have already bought about 20 million barrels of Russian oil from traders.
According to the report, traders are currently offering Russian Urals crude to Indian buyers at a premium of $4–$5 per barrel on delivery compared to Brent crude, which reflects low availability. Traders said this is a big change from February, when similar cargoes were trading at a discount of about $13 a barrel. Before the war began on 28 February, Hindustan Petroleum Corporation Limited (HPCL) had purchased two cargoes at that discounted price.
“Indian refiners are back in the market… Nowadays, availability of oil is more of an issue than price,” a trader who sells Russian oil to India told Reuters.