The US waiver for purchasing Russian seaborne crude has immediately freed up an additional 20 million barrels of oil on ships, which is anticipated to moderate skyrocketing prices that have reached over $100 per barrel in the global market as a result of the conflict in Iran.
Currently, there are about 25 vessels transporting Russian crude at sea, with an additional five vessels carrying petroleum products. These can be directed right away to the places where the demand originates.
For Indian refiners to purchase Russian oil with the goal of increasing the availability of raw materials in the market and lowering prices, the Trump administration had previously issued a 30-day waiver, which is now supplemented by the temporary waiver.
With India and China among the top importers of oil, they have so far been the primary purchasers of Russian crude, which has contributed to managing global prices.
Thursday saw the Trump administration grant a new license enabling nations to purchase specific Russian oil products on a temporary basis.
Treasury Secretary Scott Bessent posted on social media, “To expand the global reach of existing supply, @USTreasury is giving a temporary authorization to allow countries to buy Russian oil that is now stranded at sea. ”
“This narrowly tailored, short-term measure applies only to oil already in transit and will not provide significant financial benefit to the Russian government, which derives the majority of its energy revenue from taxes assessed at the point of extraction. ”
The license, which is available on the US Treasury website, only covers Russian crude or petroleum products that were transported by sea beginning on March 12. The license allows those shipments until April 11.
The news coincides with the new Iranian leader’s intention to close the Strait of Hormuz, which carries 20% of the world’s oil exports.
The Iran war is currently in its second week, with a sustained increase in missile and drawn attacks that have also hit commercial vessels and oil infrastructure in Middle Eastern nations.