India Pushes For Extension Of U.S. Waiver On Russian Oil Imports

India has requested the United States to extend the existing waiver that allows Indian refiners to continue importing Russian crude oil, according to people familiar with the discussions, as disruptions in West Asia continue to affect global energy supplies.

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The current U.S. authorization permitting imports of already-loaded Russian crude is scheduled to expire on May 16. The waiver was first granted in March and later expanded by Washington to help contain the rise in international crude oil prices by ensuring additional crude supply in the global market.

Indian officials have conveyed to the U.S. administration that energy security remains a priority as the conflict in West Asia enters its eleventh week, according to people aware of the matter.

India’s Oil Ministry and Ministry of External Affairs have not issued official statements on the discussions. The U.S. Treasury Department also did not respond to queries, as per reports.

Russian Oil Imports Continue At Elevated Levels

India’s purchases of Russian crude have accelerated ahead of the waiver deadline as refiners increase procurement to secure supply amid continued volatility in global oil markets.

Data from Kpler showed that India imported around 2.3 million barrels per day of Russian oil so far in May, marking the highest monthly pace on record.

Kpler’s predictive data indicated that full-month imports could still average about 1.9 million barrels per day even if flows moderate later in the month.

Russian crude has remained attractive for Indian refiners because of discounted pricing compared with other global grades.

India imports more than 85% of its crude oil requirements, making the country highly sensitive to disruptions in global supply chains and fluctuations in international oil prices.

Energy Security Concerns Intensify

The application for extension is made against a backdrop of persistently high prices of Brent oil above the $100-per-barrel level owing to the geopolitical situation in West Asia and the security of the shipping lanes in the Persian Gulf area.

Indian officials have warned that prolonged disruptions in energy supplies could impact fuel availability and increase pressure on domestic inflation and import costs.

According to people familiar with the discussions, New Delhi also highlighted concerns around cooking gas supply pressures affecting households across the country.

The U.S. had earlier encouraged India to reduce purchases of discounted Russian crude as part of broader efforts to pressure Moscow following the Russia-Ukraine conflict. However, Russian oil has continued to account for a significant portion of India’s crude imports over the past two years.

Global Oil Market Remains Volatile

The situation in West Asia continues to contribute to uncertainty in the international energy market, where investors and governments watch out for any disruptions to the supply chain.

Recently, India has made some moves to deal with the high cost of crude oil by having talks about importing crude and supporting foreign exchange reserves.

As of now, Indian refineries still purchase Russian crude oil shipments under the existing waiver system, waiting to see if the U.S. extends this agreement past May 16.