US Permits Temporary Purchase of Stranded Russian Oil
As of March 12, nearly 124 million barrels of Russian-origin crude were held at 30 locations worldwide, representing roughly five to six days of global supply, CNBC reported.
"The temporary increase in oil prices is a short-term and temporary disruption that will result in a massive benefit to our nation and economy in the long-term," US Treasury Secretary Scott Bessent said in a statement. He clarified that the oil in question is already stranded at sea due to Iran’s closure of the Strait of Hormuz and described the action as a "narrowly tailored, short-term measure" that applies exclusively to oil already in transit.
Crude oil prices have surged sharply since the onset of the conflict in Iran. Before the escalation, oil was trading between $60 and $70 per barrel; as of early this week, prices have nearly doubled, reaching $100 to $120 per barrel.
Bessent emphasized that the temporary purchase would not grant "significant financial benefit to the Russian government," noting that most of Russia’s energy revenue comes from taxes collected at the point of extraction rather than sales at sea.
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