Oil Prices Slip As U.S. Allows Temporary Russian Oil Purchases By India

Crude oil prices fell in early trading on March 6, 2026, after the U.S. government issued a temporary waiver allowing Indian refiners to purchase Russian crude cargoes already stranded at sea, according to the U.S. Treasury Department.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

At 8:18 AM, the April contract of Brent crude on the Intercontinental Exchange was trading at $84.21 per barrel, down 1.52% from the previous close. West Texas Intermediate crude also declined 2.10% to $79.31 per barrel, market data showed.

The decline in prices followed an announcement by U.S. Treasury Secretary Scott Bessent that Washington would allow a limited 30-day window for Indian companies to complete transactions involving certain Russian oil shipments already in transit.

Temporary Waiver For Russian Oil Cargoes

The waiver allows transactions related to Russian-origin crude oil and petroleum products loaded onto vessels on or before 12:01 a.m. Eastern Standard Time on March 5, 2026, according to a notification issued by the Office of Foreign Assets Control (OFAC) under the U.S. Treasury Department.

Under the measure, the cargoes can be delivered to India if they are purchased by Indian firms. The licence remains valid until April 4, 2026, at 12:01 a.m. Washington time.

Bessent said in a post on X that the Treasury Department issued the temporary waiver to ensure oil continues flowing into global markets. He added that the measure is deliberately short-term and applies only to cargoes already at sea.

According to Kpler data, nearly 11 million barrels of Russian crude are currently on idling tankers in Asian waters, with close to 70% of the vessels located near the Chinese coast and the Singapore Strait.

India’s Oil Import Patterns

India imports around 5 million barrels of crude oil per day, according to Kpler. In February 2026, Russia supplied about 1.04 million barrels per day (bpd) to India, compared with 1 million bpd from Saudi Arabia and 980,000 bpd from Iraq.

Russian supplies have declined from higher levels of about 1.8 million bpd in November 2025 and nearly 2 million bpd in July 2024, Kpler data shows.

India had increased purchases of Russian oil after the invasion of Ukraine in 2022 to take advantage of discounted cargoes. However, imports eased in recent months following sanctions and discussions linked to a trade framework with the U.S.

Global Supply Concerns and Disruptions in the Strait of Hormuz

Energy markets have been volatile due to the increasing tensions in the West Asian region and the disruptions in the oil supplies in the Strait of Hormuz, a vital route for the global oil supplies.

According to S&P Global Energy, tanker traffic through the strait fell sharply, with only five oil tankers passing through on March 1 compared with roughly 60 vessels per day previously.

India meets nearly 90% of its crude oil requirements through imports. Government data shows that in FY25, about 50% of India’s crude imports and 54% of liquefied natural gas shipments passed through the Strait of Hormuz.

Indian officials have stated that the country maintains a diversified energy sourcing strategy. Foreign Secretary Vikram Misri said India will continue to rely on multiple supply sources to ensure energy security and stability in imports as global supply disruptions continue.