The world desperately needs oil, but can't get it as 20% of it is literally stuck behind the blockaded Straits of Hormuz. Putin has tons of oil because sales are metaphorically stuck by US sanctions. If the world does not get access to oil soon enough, there will be a global recession or worse, and every day the price of oil rises by 5%.
Lightbulb moment: why, remove Russia's sanctions to one of the countries most in need - India - and bring the excess oil to those who have the most urgent need for it, allowing the price to fall and removing much of the leverage Iran has by keeping prices sky high.
That's what happened late on Thursday, whenthe US issued a general license to allow for some Russian oil sales to India, giving the nation more options to purchase fuel as an escalating conflict in the Persian Gulf cuts off a major producing region.
The license lasts a month (which hints at how long the operation against Iran will likely last according to the Admin) and covers transactions related to the sale of Russian crude oil and petroleum products loaded onto vessels before March 5, so long as it’s delivered to India and purchased by an Indian firm. The measure expires April 4 at 12:01 a.m. Washington time.
The move is another U-turn, and comes months after President Donald Trump slapped tariffs on Indian goods in a bid to pressure Prime Minister Narendra Modi’s government to abandon energy purchases from Russia, which India never did.
"To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil,” US Treasury Secretary Scott Bessent said in a post on X. “This deliberately short-term measure will not provide significant financial benefit to the Russian government as it only authorizes transactions involving oil already stranded at sea.”
President Trump’s energy agenda has resulted in oil and gas production reaching the highest levels ever recorded.To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil.…
Which reminds us: just a few days ago we pointed out that there are hundreds of millions of barrels of oil stuck at sea on various embargoed tankers, and that whoever managed to deliver those to a final destination would make an absolute killing...
3 days later, Goldman went and charted ithttps://t.co/9O6rSXcOhzpic.twitter.com/0PLe4CJkDA
We now wait to see if Vitol indeed becomes the merchant bank of choice for the next month's (with unlimited extensions) Russia-to-India transfers.
Source: ZeroHedge News
