The US waiver allowing the purchase of seaborne Russian crude has released around 20 million barrels of oil on ships, aiming to lower the soaring prices exceeding $100 per barrel due to the Iran conflict. Currently, 25 ships are transporting Russian crude, with five carrying petroleum products, ready to be redirected to meet demand. This temporary waiver supplements a previous 30-day waiver for Indian refiners to buy Russian oil, increasing crude availability in the market.
The waiver benefits India and China, major buyers of Russian crude, contributing to stabilizing global oil prices given their significant oil imports. In a move to expand oil supply globally, the Trump administration issued a license enabling countries to temporarily purchase stranded Russian oil products. Treasury Secretary Scott Bessent clarified that this measure, limited to oil in transit, won’t significantly benefit the Russian government financially, mainly deriving energy revenue from extraction taxes.
The license, applicable to Russian crude or petroleum products loaded on vessels by March 12, allows these shipments until April 11. This development coincides with Iran’s threat to close the Strait of Hormuz, a critical route for 20% of global oil exports. Amid the Iran conflict’s second week, escalating missile and drone attacks have targeted oil infrastructure in the Middle East and commercial ships in the region.
