Russia boosts oil exports as US grants India waiver

The war between Iran, Israel and the United States has increased demand for Russian oil and gas, which, according to the Kremlin, is strengthening Russian energy exports weakened by sanctions over the war in Ukraine.

The conflict, now in its seventh day, has virtually paralysed traffic through the Strait of Hormuz, a key route for about a fifth of the world’s oil and liquefied natural gas (LNG) supplies.

‘We are seeing a significant increase in demand for Russian energy resources in connection with the war in Iran,’ Kremlin spokesman Dmitry Peskov said. He stressed that Russia remains a ‘reliable supplier’.

According to traders, Russian Urals crude supplied to India is being sold at a higher price than Brent crude for the first time. Before the outbreak of the conflict it traded at a discount of $10 to $13 per barrel, while it is now fetching about $4 to $5 more than Brent for spring deliveries.

The surge in demand from Indian refineries, which have limited access to oil from the Middle East, has also contributed to the increase. At the same time, the United States has granted India a 30-day exemption allowing it to purchase Russian oil at sea.

(reuters, est)