Volatility will have consequences: India asks US to extend Russian oil waiver

India has asked the United States to extend its waiver allowing Russian oil imports as the ongoing Iran war continues to disrupt global energy supplies, Bloomberg reported on Thursday.

The US first gave India the green light in March and later expanded the authorization until May 16 to help contain rising oil prices through additional crude supplies.

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While Russian crude is not under blanket US sanctions, Washington had earlier pressed New Delhi to reduce purchases of discounted Russian oil to increase pressure on Moscow over the Ukraine war.

Indian officials have now told the US that ensuring stable energy supplies remains a priority, as volatility in global oil markets can have wider economic consequences. The officials warned that rising energy pressures were already affecting 1.4 billion people, including through shortages of cooking gas, the report said. 

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Today, Brent crude oil is trading above $105 per barrel. On 27 February, just before the Iran conflict erupted, Brent (the global benchmark) was around $72–73 per barrel. The move from roughly $73 to around $105–107 recently implies an increase of about $32–34 per barrel, roughly 44–47% higher than pre‑war levels.

Indian refiners have increased Russian oil imports ahead of the current waiver deadline. 

According to Kpler data, India's daily inflows of Russian crude in May have reached a record 2.3 million barrels per day as refiners accelerated purchases under the waiver window. The waiver allowed imports of Russian oil cargoes that had already been loaded.

The latest development comes amid continued uncertainty in global oil markets due to the nearly 11-week conflict in the Persian Gulf, which has intensified concerns over supply disruptions and rising fuel costs.

On Monday, the Defence Ministry informed that India has 60 days of crude oil, 60 days of Natural Gas, and 45 days of LPG rolling stock. The foreign exchange reserves stand at a comfortable $703 billion.

India is the world’s third-largest oil refiner and fourth-largest exporter of petroleum products, exporting to over 150 countries, and is meeting domestic demand in full. "But there is a huge cost being borne by the nation as international crude prices are continuing at very high levels. Fuel conservation can ease this burden," the ministry said.