(March 13): The US has issued its second authorisation for buyers to take Russian oil cargoes already at sea, a move intended to ease growing pressure on prices as the war in the Middle East continues.
Treasury Secretary Scott Bessent, in a social media post, said the move was designed to be a “narrowly tailored, short-term measure” that “applies only to oil already in transit and will not provide significant financial benefit to the Russian government.”
The measure, which applies only to oil loaded before March 12, expands upon a month-long waiver granted to India last week. That was intended for crude loaded on ships before March 5. The wider provision is no longer confined to India, but does not allow for Iran to buy the oil.
The US government has sought to take steps to tame spiking crude and fuel prices. Among other options, it is considering a plan to waive a century-old maritime law that requires American ships be used to transport goods between US ports. The efforts have yet to have a major impact on prices, with Brent crude near US$100 a barrel in early Asia trading on Friday.
Bessent has previously suggested the US could “unsanction” additional Russian oil to ease price pressure in the oil market.
“If oil prices spike again, perhaps because Iran steps up its attacks on oil tankers in the Strait of Hormuz, pressure to lift Russia sanctions will build further,” Robin Brooks, a senior fellow at the Brookings Institution, said in a social media post.
See also: Trump and Iran strike defiant tone as oil markets see little relief
Bessent said earlier on Thursday that any benefit for Russia from US actions would be “unfortunate” and short-term. “We hope that it will be a micro period that they will benefit,” he said on the Master Investor Podcast with Wilfred Frost.
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