Trump may extend waiver allowing purchases of Russian oil, Reuters says
The administration of US President Donald Trump is likely to extend a waiver allowing countries to purchase certain volumes of sanctioned Russian oil and petroleum products as early as 10 April.
Source: Reuters, citing two informed sources
Details: Since mid-March, the US Department of the Treasury has allowed purchases of Russian oil and petroleum products already at sea under a 30-day waiver set to expire on 11 April.
US Treasury Secretary Scott Bessent met Trump in the Oval Office on Thursday to discuss extending the waiver, and they concluded that doing so would be a good idea, one of the sources said.
Oil prices surged sharply after the outbreak of war with Iran due to the partial closure of the Strait of Hormuz, through which about 20% of global oil and gas supplies passed daily before the conflict.
Rising fuel prices pose a serious challenge for Trump and the Republican Party ahead of the midterm elections in November.
Background:
- Before the outbreak of war in the Middle East, Russian oil was trading at its steepest discount since 2023, priced US$30.62 below the global benchmark Brent at about US$40-42 per barrel.
- On average, Russia exported 3.35 million barrels of oil per day between 8 March and 5 April, the highest export level since June 2022.
- Russia's revenues from its largest single oil tax are expected to double to US$9 billion in April due to the oil and gas crisis triggered by the US and Israel's attack on Iran.
- Moscow rushed to load oil onto tankers to take advantage of the sharp price increase caused by Iran's effective closure of the Strait of Hormuz, as well as the US tariff waiver allowing buyers to purchase these volumes without fear of sanctions.
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