US Waiver Leads to Drop in Global Crude Prices: Impact on Oil Market
Synopsis
On March 13, global oil prices dipped as the US issued a waiver allowing countries to buy Russian oil. This measure is expected to have both short-term and long-term effects on prices and supply dynamics.
Key Takeaways
US Waiver: Allows countries to buy stranded Russian oil.
Price Fluctuations: Brent crude down to $99.99, WTI at $95.09.
Indian Crude Supply: Secure with volumes exceeding previous Hormuz deliveries.
Diversification: India sources crude from 40 nations, up from 27.
Refinery Capacity: Operating at high utilization rates.
New Delhi, March 13 (NationPress) Oil prices on the global stage experienced a slight downturn on Friday following the US's announcement of a 30-day waiver that allows nations to purchase Russian oil.
Brent crude was priced at $99.99 per barrel, a decrease of 0.47%, while West Texas Intermediate (WTI) fell by 0.67% to $95.09 per barrel.
US Secretary of the Treasury, Scott Bessent, stated on X that "To broaden the global accessibility of current supplies, @USTreasury is issuing a temporary authorization for countries to acquire Russian oil that is currently stranded at sea."
He clarified that this specific and limited measure applies solely to oil already in transit and is unlikely to offer significant financial gains to the Russian government, which primarily relies on taxes collected at the extraction point for its energy revenue.
Bessent further mentioned that this temporary rise in oil prices is a short-lived disruption that will ultimately yield substantial advantages for our nation and economy in the long run.
The US waiver specifically pertains to Russian crude oil and petroleum products loaded onto vessels before 12:01 AM Eastern Daylight Time on March 12.
Earlier in the week, the US declared the release of 172 million barrels from its strategic petroleum reserves.
Simultaneously, the Indian government reassured that the crude supply remains secure, with volumes now surpassing what would have been delivered via the Hormuz route.
Prior to this situation, around 45% of India's crude imports transited through Hormuz. Currently, India has secured crude volumes exceeding what would have been delivered through the disrupted Strait in the same timeframe. Sourcing from non-Hormuz routes has increased to approximately 70% of crude imports, up from 55% before the conflict, as reported by Union Minister for Petroleum and Natural Gas, Hardeep Singh Puri.
India now sources crude from 40 countries, a significant increase from 27 in 2006-07; this diversification, achieved through consistent policy over the years, has provided us with options that many other nations now lack.
Refineries are functioning at high capacity utilization, with several even exceeding 100%, Puri noted.
Point of View
It is essential to recognize the delicate balance in the global oil market. The US waiver presents a complex situation that could stabilize or disrupt pricing structures, depending on how nations respond. Our focus should remain on the long-term implications for energy security and economic stability.
NationPress
5 Aug 2026
Frequently Asked Questions
What prompted the US to allow the purchase of Russian oil?
The US announced a temporary waiver to increase the global reach of existing oil supplies, allowing countries to buy Russian oil that was stranded at sea.
How will this waiver affect oil prices?
While there may be a temporary rise in oil prices, the waiver is expected to have long-term benefits for the US economy by stabilizing supply.
What percentage of India's crude imports come from Hormuz?
Before the current crisis, approximately 45% of India's crude imports transited through the Hormuz route.
How is India diversifying its crude oil sources?
India is now sourcing crude from 40 countries, increasing non-Hormuz sourcing to about 70% of its total imports.
What is the current status of Indian refineries?
Indian refineries are operating at high capacity utilization, with some exceeding 100% capacity.
