Oil Prices Slip as US Grants India 30-Day Waiver to Purchase Russian Oil
Oil prices declined in early trading on Friday after the United States announced a temporary 30 day waiver allowing Indian refiners to purchase Russian oil currently stranded at sea. The move eased concerns around supply disruptions that had intensified following the recent US Israel and Iran conflict.Brent and WTI Crude Decline in Early Trade
The April contract of benchmark Brent crude on the Intercontinental Exchange was trading at $84.21 per barrel, down 1.52 percent from the previous close.Meanwhile, West Texas Intermediate crude fell 2.10 percent to $79.31 per barrel during early trading.
The decline comes after oil prices had surged more than 15 percent since last week when tensions escalated following the conflict involving the United States, Israel, and Iran.
US Announces Temporary Waiver for Indian Refiners
The US Treasury Department confirmed that Indian refiners would receive a temporary 30 day waiver to purchase Russian crude that is already stranded at sea. The decision aims to ensure uninterrupted global oil flows amid rising geopolitical tensions and supply chain uncertainties.US Treasury Secretary Scott Besant said the short term measure is designed to prevent disruptions without providing major financial gains to Russia.
He stated that the waiver authorizes transactions only for Russian oil already stranded at sea and is intended to ensure oil continues flowing into global markets.
Strait of Hormuz Tensions Impact Global Supply Concerns
The announcement comes at a time when disruptions around the Strait of Hormuz have heightened fears over global oil supply and shipping security.The United States had earlier indicated that it may deploy naval escorts for oil tankers passing through the strategic waterway if required. The White House also noted that recent actions involving Iran could eventually support stability in global energy markets.
The Strait of Hormuz remains one of the world’s most critical maritime oil transit routes.
Russia Remains a Key Oil Supplier to India
India continues to rely heavily on crude imports, sourcing nearly 90 percent of its oil requirement from overseas.Data from global ship tracking firm Kpler showed that Russia supplied an average of 1.04 million barrels per day of oil to India in February. Saudi Arabia followed with 1 million barrels per day, while Iraq supplied about 980,000 barrels per day.
India’s total daily crude consumption is around 5.5 million barrels, with approximately 1.5 to 2 million barrels passing through the Strait of Hormuz.
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