U.S. 'allows' India to buy Russian oil for 30 days amid global supply constraints
The U.S. Treasury Department issued an order permitting India to import Russian oil for 30 days, aiming to mitigate price and supply shocks caused by global constraints, including Iran's blockade of the Strait of Hormuz. Analysts suggest Russian oil may no longer be available at a discount due to competition from China. India's current fuel reserves stand at 50 days. The move comes as Brent crude prices have surged and India's Russian oil imports had previously fallen to a 44-month low in January 2026. The U.S. views India as an essential partner and anticipates increased purchases of U.S. oil.
Key Points
- The U.S. Treasury Department granted India a 30-day reprieve to import Russian oil to alleviate global energy pressure.
- Global oil supplies are constrained due to Iran's blockade of the Strait of Hormuz, leading to increased Brent crude prices.
- India's current fuel reserve is 50 days, split equally between crude oil and petrol/diesel.
- Russian oil imports to India reached a 44-month low of $1.98 billion in January 2026.
- The U.S. expects India to increase its purchases of U.S. oil, recognizing India as an essential partner.
Exam Facts
- U.S. Treasury Secretary Scott Bessent issued the order.
- India's Russian oil imports were $1.98 billion in January 2026, a 44-month low.
- Over 55% of India's oil imports pass through the Strait of Hormuz.
- Brent crude prices increased to nearly $88 a barrel, a jump of about 20% in a week.
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