By Ruchi Bhatia and Rakesh Sharma
India has asked the US to extend its waiver on Russian oil, according to people familiar with the matter, as the nearly 11-week war in the Persian Gulf disrupts energy supply.
The US first provided a green light in March, and then widened that with an authorization that runs until May 16, in an effort to limit rising oil prices with additional barrels. While Russian crude is not subject to blanket sanctions, Washington has previously pushed New Delhi to cut back on discounted purchases in order to pressure Moscow over its war in Ukraine.
With no end in sight for the conflict in the West Asia, officials in New Delhi have warned Washington that supply remains a priority, as continued volatility in the oil market will have wide consequences. That includes the impact on 1.4 billion Indians already struggling with a cooking gas shortage, the people said. They asked not to be named as the conversations are not public.
India’s Oil Ministry and Ministry of External Affairs did not respond to requests for further information. The US Treasury also did not respond to emailed queries.
Indian imports of Russian oil have been running at a record pace as refiners go all out before the current waiver expires.
So far in May, daily inflows have totaled an unprecedented 2.3 million barrels, according to Kpler data, as the waiver allowed imports of already-loaded Russian oil. Full-month flows may come in at a still-substantial 1.9 million barrels a day, Kpler’s predictive data shows.
