After a recent surge due to the US-Israel and Iran conflict, oil prices saw a decline following the US decision to permit Indian refiners a 30-day waiver to purchase Russian oil stuck at sea. The benchmark Brent crude’s April contract on the Intercontinental Exchange fell to $84.21 per barrel, marking a 1.52% decrease from the previous close. Similarly, the West Texas Intermediate on the same exchange dropped by 2.10% to $79.31 a barrel in early trading.
The US’s 30-day waiver aims to alleviate tensions in the global oil supply chain amidst disruptions near the Strait of Hormuz. This move is expected to offer Indian refiners more flexibility in sourcing Russian crude. US Treasury Secretary Scott Bessent clarified that the temporary waiver is designed to maintain oil flow into the global market without significantly benefiting the Russian government financially, as it only covers transactions involving oil already stranded at sea.
Amid concerns over energy supplies and shipping security due to the conflict with Iran, the US had previously hinted at the potential deployment of naval escorts for oil tankers passing through the Strait of Hormuz if needed. The White House also suggested that actions against Iran could lead to enhanced stability in global energy markets. India, heavily reliant on oil imports, receives nearly 90% of its oil needs through imports.
According to data from Kpler, a global ship tracking firm, Russia supplied an average of 1.04 million barrels of oil per day in February, surpassing Saudi Arabia’s 1 million bpd and Iraq’s 980,000 bpd. India, consuming about 5.5 million barrels of crude daily, witnesses 1.5–2 million barrels passing through the Strait of Hormuz.
