00:00The U.S. just gave India a 30-day pass to buy Russian oil and the reason isn't Russia.
00:05It's the crisis in the Middle East. As tensions disrupt energy flows to the Persian Gulf,
00:11Washington has now issued a temporary waiver allowing Indian companies to buy Russian crude
00:16that was already loaded onto ships before March 5. A 30-day license from the U.S. Treasury now
00:21allows those cargoes to be purchased as long as the oil is delivered to India and bought by an
00:26Indian firm. The measure expires April 4. U.S. Treasury Secretary Scott Besant called the
00:32waiver a stop-gap measure meant to keep oil flowing into global markets. It only applies
00:37to cargoes already stranded at sea, which he said limits any significant financial benefit
00:42to Russia. Ship tracking firm Kepler estimates nearly 11 million barrels of Russian crude are
00:48sitting on idling tankers in Asian waters, cargoes that could now head to India. India rammed up
00:54the purchases of Russian oil after Moscow's 2022 invasion of Ukraine drawn by discounted
00:59cargoes. However, in recent months, the Trump administration had tried to curb that trade
01:04imposing tariffs on Indian goods and sanctioning Russia's two largest oil producers.
01:10Now the temporary waiver comes as supplies from the Persian Gulf face disruption with Strait
01:15of Hormuz effectively closed. As a result, some refiners are already feeling the strain.
01:20For example, India's Mangalore refinery and petrochemicals has shut one crude processing
01:25unit due to low stockpiles. But the temporary license does little to address separate disruptions
01:30to imported gas and cooking fuel supplies that India heavily depends on. And many analysts say
01:36real relief will only come once shipments to the Strait of Hormuz resume.
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