U.S. Temporarily Allows Purchase of Stranded Russian Oil to Stabilize Markets

U.S. Temporarily Allows Purchase of Stranded Russian Oil

The U.S. has introduced a temporary measure to allow the purchase of Russian oil stranded at sea, aimed at stabilizing energy markets affected by rising crude prices. Treasury Secretary Scott Bessent highlighted that this policy is narrowly tailored and short-term, targeting oil already in transit.

Approximately 124 million barrels of Russian-origin oil are currently at sea across 30 global locations, providing enough supply for about five to six days. The temporary policy seeks to alleviate supply concerns without providing significant financial benefits to the Russian government, as Moscow primarily generates energy revenue through taxes on extraction.

The U.S. also granted a 30-day waiver to India to purchase Russian crude, with Bessent noting that Russian barrels are stranded at sea and represent a quick source of supply for Indian refineries. However, the G7 and European Union have imposed sanctions on Russian oil, including a price cap of $44.1 per barrel, and plan to phase out all Russian oil imports by 2027.

This decision follows former President Joe Biden's 2022 ban on Russian oil imports into the U.S., which remains in effect.