The United States has advised India to utilize over 100 million barrels of Russian crude oil waiting offshore for Chinese refineries to help stabilize rising oil prices during the Iran conflict. Energy Secretary Chris Wright, in interviews with US television programs, disclosed that the Trump administration had directly contacted India as a short-term measure to calm energy markets affected by disruptions in the Middle East.
Wright mentioned that there is a significant amount of Russian crude oil waiting to be delivered to China, and the proposal was to redirect these cargoes to Indian refineries instead of letting them idle offshore. This strategic move aims to alleviate concerns of oil shortages, price spikes, and market anxieties caused by the Iran conflict disrupting crucial energy shipping routes.
The US Energy Secretary emphasized that this action is a temporary and practical step to prevent panic in global oil markets and does not signify a shift in Washington’s broader policy towards Russia. He reassured that the world currently has an adequate supply of oil and recent price fluctuations are more a result of market fears and logistical challenges rather than an actual oil shortage.
The ongoing conflict in the Middle East, particularly disruptions in the Strait of Hormuz, a vital oil shipping passage, has further exacerbated concerns. While shipping in the area is gradually resuming, it remains below normal levels, with Wright estimating a return to regular traffic in a few weeks, not months.
