The United States has urged India to contemplate accepting over 100 million barrels of Russian oil that are presently docked on vessels awaiting discharge at Chinese harbors.
The demand arises as international oil markets become anxious over the continuing conflicts related to Iran in the Middle East.
US Energy Secretary Chris Wright stated that Washington contacted India as a temporary measure to stabilize oil markets and stop prices from increasing further.
This occurs as reports indicate that India will obtain over 30 million barrels of Russian crude oil this month, due to tensions in the West Asia affecting the Strait of Hormuz.
The new supply of Russian oil follows a recent exemption from the United States that permitted specific dealings with Russian shipments already in transit.
Until recently, Russian oil had been priced lower than Brent crude since the onset of the Russia–Ukraine War in 2022. However, with supplies becoming scarce and demand remaining robust, Russian oil is presently marketed at a premium above the benchmark.
Also Read: Five Dutch Startups Redefining Europe's Innovation Edge
Wright states that representatives from the Trump administration reached out directly to Indian leaders regarding the proposal. The aim was to transport the oil that is currently floating in the sea to Indian refineries rather than allowing it to remain for weeks off the coast of China.
Also Read: 6 Remarkable Women Entrepreneurs Stirring Up a Tech-Storm in UK
“I contacted the Indians, and so did Treasury Secretary (Scott) Bessent, and mentioned that there is a large amount of oil that’s awaiting to be unloaded at Chinese refineries,” Wright states.
He states that a significant amount of Russian crude is presently stranded at sea due to the restricted capacity of Chinese refineries to unload vessels currently. More than 100 million barrels of Russian crude oil are floating and ready to be delivered to China.
Also Read: Exploring Germany's AI Innovation: 5 Startups Leading the Way
Wright clarified that the plan is to redirect those shipments to Indian refineries rather than allowing them to remain unused at sea for weeks. Rather than letting it wait six weeks to unload at that location, let's move the oil up, have it arrive at Indian refineries, and alleviate the fear of oil shortages, mitigate price spikes, and address the concerns happening in the market.