Washington is turning to New Delhi for help in defusing oil market tensions. On March 6, Energy Secretary Chris Wright confirmed the US has contacted India to purchase Russian oil stored in tankers around South Asia, a stopgap to ease pressures from Hormuz disruptions.
The floating reserves include shipments meant for China, now stalled amid shipping snarls. Wright’s pitch: Let India buy and refine it swiftly, injecting supply to halt price climbs.
The Strait of Hormuz, gateway for 20% of global oil sea transport, faces Iran-Oman strains that rattle traders. Quick fixes like this aim to divert idle crude, reducing scramble for scarcer sources.
‘Indian refineries take the oil, freeing up others from competing,’ Wright outlined, predicting ample future supply.
Since Russia’s Ukraine invasion drew Western curbs, India has surged as a top Russian oil client. Discount buys feed its export-oriented refineries, reshaping global flows.
No Russia policy U-turn here, Wright insisted: ‘Short-term only, to manage prices a bit.’ Part of broader interim tactics, it highlights vulnerabilities in chokepoint-dependent trade.