File photo: Scott Bessent
The United States has issued a temporary waiver allowing India to continue purchasing Russian oil, with Washington saying the move is aimed at stabilising global energy supplies during rising tensions in the Middle East.On Friday, US treasury secretary Scott Bessent announced the decision in a post on X, saying the Treasury Department would permit Indian refiners to buy Russian crude for a limited period.“To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil,” Bessent said.He added that the US expects India to increase energy imports from the United States in the future. “India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of U.S. oil,” Bessent wrote, adding that the temporary step would “alleviate pressure caused by Iran’s attempt to take global energy hostage.”
Middle East tensions disrupt global energy flows
The waiver comes as escalating conflict in the Middle East threatens to disrupt crude shipments through the Strait of Hormuz, a key route through which a large share of global oil supplies pass.Earlier, Russia signalled that it is ready to redirect crude shipments to India to help offset supply disruptions caused by the conflict. Nearly 9.5 million barrels of Russian oil are currently positioned near Indian waters and could reach the country within weeks, as per Reuters.The potential supply shift follows Iranian strikes on vessels in the region, which have raised fears that the Strait of Hormuz could be partially closed. Around 40% of India’s crude imports transit through this strategic waterway.
India seeking alternative crude supplies
India, the world’s third-largest oil consumer, has been exploring alternative supplies as a precaution amid the regional crisis. Government sources cited by Reuters said that New Delhi has been assessing crude availability to cover the next 10 to 15 days, anticipating possible disruption in Middle Eastern shipments.The country maintains relatively limited emergency reserves, with national crude stocks covering roughly 25 days of demand. India’s refiners together process about 5.6 million barrels of crude per day and remain in contact with traders marketing Russian oil.Russian crude has played a significant role in India’s energy mix since the Ukraine war began. Imports from Russia had dipped to about 1.1 million barrels per day in January — the lowest level since November 2022 — but later rebounded to roughly 30% of India’s total crude imports, according to market data cited in the report.Any further increase in Russian oil purchases, however, could depend on policy direction from New Delhi, particularly as energy trade remains a sensitive issue in India’s dealings with Washington.
