US praises India’s compliance on Russian oil, considers easing curbs to stabilize global supply
The United States has praised India for cooperating on restrictions related to Russian oil. At the same time, Washington has indicated it may relax some limits on Russian crude to maintain stability in global energy markets.
US Treasury Secretary Scott Bessent made the remarks during an interview on the Fox Business programme hosted by Larry Kudlow. He said India acted responsibly after Washington asked countries to reduce purchases of sanctioned Russian oil.
First, Bessent recalled earlier discussions between Washington and New Delhi. The United States had asked India to stop buying Russian crude that faced sanctions. According to him, India followed that request. As a result, the US administration viewed India as a cooperative partner during the period of restrictions.
He noted that India had already started planning alternatives. Indian buyers prepared to replace Russian supplies with oil imports from the United States. However, the global oil market soon faced supply concerns. Therefore, Washington reconsidered its approach in order to avoid sudden disruptions.
Next, Bessent explained the temporary decision regarding Russian shipments already moving across the seas. Several cargoes of Russian oil had remained on ships when the restrictions took effect. Instead of blocking those deliveries, the United States allowed India to receive that oil. Officials believed this step would help maintain supply balance in the short term.
He said the move aimed to prevent a sudden gap in global oil availability. If refiners had lost those shipments immediately, markets might have faced tighter supply and higher prices. Therefore, Washington permitted India to accept the cargoes already in transit.
Meanwhile, tensions in West Asia have created fresh pressure on energy markets. The conflict involving Iran has raised fears of disruptions in oil shipments across the region. Because the Middle East supplies a large share of the world’s crude, any instability there quickly affects global prices.
As a result, energy officials in Washington have begun examining additional options. Bessent said the United States could consider lifting sanctions on more Russian oil if global markets require additional supply. Such a move would aim to prevent severe shortages and stabilize prices.
At the same time, developments in the United States oil market have reflected these global concerns. Reports indicated that heavy crude produced along the US Gulf Coast recorded a sharp price increase. The benchmark Mars sour crude, which comes from fields in the Gulf of Mexico, traded at a premium to the West Texas Intermediate.
In fact, that premium reached its highest level since April 2020. Analysts attributed the rise to stronger demand for American barrels as buyers searched for alternatives to Middle Eastern supply.
Furthermore, disruptions in shipping routes have contributed to the trend. Concerns about the safety of tanker movement through the Strait of Hormuz have pushed refiners to diversify their sources. Some Gulf producers have also limited output, which has tightened supply.
Consequently, refiners have increased purchases of US heavy crude grades. That shift has pushed Gulf Coast prices higher and strengthened demand for American energy exports.
Overall, the situation reflects a delicate balance in global oil politics. On one hand, the United States continues to enforce sanctions on Russian energy. On the other hand, policymakers also want to avoid supply shocks that could harm the global economy.
For now, Washington has acknowledged India’s cooperation. At the same time, officials continue to monitor the market closely as geopolitical tensions and energy needs shape the next policy steps.
