U.S. Allows Temporary Purchases of Russian Oil Already at Sea
The United States on Thursday temporarily authorized the purchase of Russian oil cargoes already stranded at sea in a bid to stabilize energy markets. US Treasury Secretary Scott Bessent said in a post on X the move is a “narrowly tailored, short-term measure” that applies only to oil already in transit.
CNBC reported there were roughly 124 million barrels of Russia-origin oil at sea across about 30 locations globally as of March 12, equivalent to around five to six days of supply. Bessent said the recent rise in oil prices reflects a short-term disruption and argued the steps taken would deliver longer-term benefits for the US economy.
Oil prices have swung sharply since the start of the war involving Iran, with crude nearing US$120 a barrel on Monday. Global benchmark Brent settled just above US$100 a barrel on Thursday after Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep the Strait of Hormuz closed.
Bessent said the temporary authorization will not provide “significant financial benefit to the Russian government,” noting that Moscow collects the bulk of its energy revenue through taxes assessed at the point of extraction.
A notice posted on the Treasury Department’s website said the exemption covers Russian crude and petroleum products loaded onto vessels on or before 12:01 a.m. Eastern time, and allows purchases through 12:01 a.m. Eastern time on April 11.
The move follows a 30-day waiver granted to India last Thursday to buy Russian crude under similar terms, with the Treasury secretary again arguing it would not materially benefit Russia because it only authorizes transactions involving oil already at sea. In a podcast interview released Friday, Bessent said it was “unfortunate” Russia would benefit financially, but he hoped it would be only for a very short period, adding the waiver was issued because “Russian barrels are on the water” and represent a quick source of supply for Indian refineries.
The G7 and the European Union have imposed sanctions on Russian oil over Moscow’s 2022 invasion of Ukraine, including a price cap of US$44.1 per barrel. The EU has also committed to phasing out all remaining oil imports from Russia by the end of 2027. In 2022, then-US President Joe Biden banned imports of Russian oil, liquefied natural gas, and coal into the United States.
Source : Newsmaker.id
