On March 6, Washington (NationPress) reported that the United States has initiated contact with India regarding the acquisition of Russian oil currently stored in floating reserves in southern Asia. This effort, as detailed by US Energy Secretary Chris Wright in an interview with ABC News, is aimed at alleviating the strain on global oil markets.

This interim strategy is intended to facilitate the swift transfer of stored crude oil to refineries, thereby preventing a surge in oil prices amidst supply chain disruptions caused by shipping limitations in the Strait of Hormuz.

“We must expedite oil availability in the short term,” stated Wright. “Long-term supply is sufficient; there are no concerns in that regard.”

Wright noted that the US administration has pinpointed significant quantities of Russian crude oil stored on tankers near Asian markets, including oil that was initially designated for China but remains unsold.

“The floating Russian oil reserves around Southern Asia—particularly relating to China—are currently backed up,” he explained.

Washington has approached India with the proposal to purchase this oil and refine it domestically to quickly augment market supply.

“We’ve reached out to our partners in India, encouraging them to procure that oil and process it in their refineries,” he stated.

The strategy is designed to mitigate competition among global refiners for alternative oil supplies.

“This action pulls stored oil directly into Indian refineries, easing the pressure on other refiners worldwide who no longer need to compete with India for available oil,” Wright elaborated.

Oil markets have been experiencing upward pressure due to shipping constraints associated with tensions in the Strait of Hormuz, a vital passage for oil transit.

Wright mentioned that this initiative with India is part of a series of temporary measures aimed at stabilizing prices.

“We have several such short-term strategies in place,” he affirmed.

He emphasized that this decision does not reflect a broader shift in US policy regarding Russia.

“This is not a change in our policy towards Russia,” Wright clarified. “It is merely a temporary adjustment to help manage oil prices more effectively.”

India ranks among the largest importers of crude oil globally and has significantly increased its purchases of Russian oil following the imposition of Western sanctions that altered global energy dynamics due to the conflict in Ukraine. Indian refiners have become key buyers of discounted Russian crude and export refined petroleum products worldwide.

The Strait of Hormuz is crucial, accounting for about one-fifth of the world’s seaborne oil shipments, making any disruption in the area a significant concern for energy markets. Governments and energy producers often implement short-term measures to stabilize supply when geopolitical tensions threaten key shipping routes.