US has granted a 30-day waiver to several countries to purchase sanctioned Russian crude.
This comes weeks after India received the same waiver, valid till Apri 4.
This is the latest move by the US to bring down soaring energy prices after helping create the West Asian conflict.
US Opens Russian Crude Waiver to Several Nations, Weeks after Granting 30-Day Licence to India
The waiver, valid until April 11, permits the delivery and purchase of Russian crude and petroleum products that were already loaded onto ships as of March 12
Russian President Vladimir Putin and US President Donald Trump Reperesentative Image
Summary
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After granting the special 30-day waiver to India for the purchase of Russian crude, the US has now allowed other countries to do the same. Washington says the move is aimed at steadying global energy markets disrupted by the ongoing conflict in West Asia.
The waiver, issued on Thursday, permits the delivery and purchase of Russian crude and petroleum products that were already loaded onto ships as of March 12. It remains valid until April 11, as confirmed by a notice on the US Treasury Department's website.
It is to be noted that the Trump administration has been under pressure to bring down soaring energy prices after helping create the conflict. The conflict between the US-Israel alliance and Iran has effectively paralysed shipping through the Strait of Hormuz, sending energy prices sharply higher.
Emergency Reserves Activated
Washington's response has been rapid, multifrontal, and revealing. In the span of just two weeks, the Trump administration has tapped its emergency oil reserves at a record scale.
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US Energy Secretary Chris Wright in an interview with Fox News announced that 32 member nations of the International Energy Agency (IEA) unanimously agreed to release 400 million barrels of oil and refined products from their respective reserves.
The US will contribute 172 million barrels from the Strategic Petroleum Reserve (SPR), with releases beginning next week. Wright said in the interview it will take about 120 days to deliver the full US release.
Point to note: The US SPR is essentially the world's largest emergency stockpile of crude oil, maintained by the Department of Energy. It holds hundreds of millions of barrels in underground salt caverns in Texas and Louisiana to reduce impacts from severe energy supply disruptions.
The US currently holds about 415 million barrels in the reserve, which is roughly 58% of its total authorised capacity of 714 million barrels.
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How India Cashed In on Russian Crude Waiver
US' waiver for India allowed the country's refiners to purchase Russian crude oil that was already loaded onto ships before March 5, provided it was delivered to India and purchased by Indian companies.
According to an earlier report by Bloomberg, state-owned Indian Oil Corporation purchased around 10 million barrels, while Reliance Industries bought at least as much. Together, the two companies snapped up all available unsold Russian crude in the spot market, much of it already sailing through Asian waters.
The total haul was approximately 30 million barrels, equivalent to India's entire monthly import of Russian crude in February, according to the report.