Washington, March 7: In a recent interview, US Energy Secretary Chris Wright revealed that the United States has reached out to India to purchase Russian Oil stored in floating reserves in South Asia. This initiative is part of a short-term strategy aimed at alleviating pressure on global oil markets.
Wright explained that the temporary measure is intended to expedite the delivery of stored crude oil to refineries and prevent a surge in oil prices, particularly due to shipping disruptions around the Strait of Hormuz, which have intensified pressure on supply routes.
“We need to bring oil to the market in the short term. In the long term, supply is abundant. There is no cause for concern,” Wright stated. He noted that the US administration has identified significant quantities of Russian crude oil stored in tankers near Asian markets, including oil originally intended for China but not yet purchased by buyers.
“The reserves of Russian oil around South Asia are essentially a backup for China,” he added. The US has encouraged India to procure this oil and process it in its refineries to quickly supply the market. “We have told our friend india to buy that oil and bring it to their refineries,” Wright said.
This strategy aims to reduce competition for available supply among global refineries. Wright emphasized that this stored oil would be quickly delivered to Indian refineries, thereby alleviating pressure on other refineries that would no longer need to compete with Indian buyers for the supply.
The upward pressure on oil markets has arisen due to concerns over supply disruptions caused by tensions in the Strait of Hormuz, a critical maritime route for oil transport, accounting for nearly one-fifth of global maritime oil shipments.
Wright clarified that involving India in this initiative is part of a series of temporary measures aimed at stabilizing prices. “We have several measures that are short-term and temporary,” he noted, stressing that this decision does not indicate a shift in the US’s broader policy towards Russia.
“This is not a change in policy towards Russia. It is merely a very brief policy adjustment to help keep oil prices somewhat under control,” Wright concluded.
India, one of the world’s largest crude oil importers, has significantly increased its purchases of Russian oil following Western sanctions after the Ukraine conflict, becoming a major buyer of discounted Russian crude and exporting refined petroleum products to global markets.
As geopolitical risks affect major shipping routes, governments and energy producers often take short-term steps to stabilize supply, keeping a close watch on any disruptions or tensions in the region.