The United States government has recently found itself explaining a policy move that has raised many questions about how global oil markets are being managed. In a development that has drawn international attention, officials from the US Treasury Department suggested that they had provided India with a temporary waiver to purchase Russian crude oil that is currently in tankers at sea. The announcement came on March 6, when the Treasury Department released a notice stating that it is “allowing” India a 30-day waiver to buy Russian oil shipments already on the water.

The announcement has sparked discussion about whether Washington truly has the authority to influence India’s energy purchasing decisions. Critics say the language used by the US administration gives the impression that the United States controls the buying decisions of other countries. At the same time, American officials have also admitted that India’s refining capacity plays a major role in keeping global oil prices stable during a period when supply pressures are building.

During a televised appearance, US Energy Secretary Chris Wright spoke about the reason behind the waiver and its effect on the global energy market. According to him, allowing Indian refineries to process Russian crude can help reduce pressure on refineries in other parts of the world and keep oil prices from rising sharply during a time of tight supply.

“China does not treat their suppliers well. So there is a bunch of floating barrels just sitting there. So we have reached out to our friends in India, we said ‘buy their oil, bring it into your rifineries. That puts stored oil into the Indian refineries and releases the pressure on other refineries around the world. …We have a number of measures like it that is short term and temporary. There is no change in our policy towards Russia. This is a very brief change in policy, just to keep oil prices down”, Chris Wright stated during an interview on ABC News Live.

His remarks highlighted how the refining capacity in India has become an important part of the global energy supply chain. Indian refineries process large volumes of crude oil and then export refined products such as diesel and petrol to several countries. This ability allows India to absorb crude oil that might otherwise remain unused, helping prevent supply disruptions.

A similar explanation came from US Treasury Secretary Scott Bessent, who discussed the situation during a separate television appearance. Speaking to Fox News, Bessent described the decision as a temporary measure meant to ease pressure in the international oil market.

“Yesterday, Treasury agreed to let our allies in India start buying Russian oil that is on the water. The Indians have been very good actors. We had asked them to stop buying sanctioned Russian oil, and they did. They are going to substitute it with US oil. But there is a temporary gap in oil around the world. So we have given them permission to accept Russian oil. We may un-sanction other Russian oil too. There is one thing Treasury can do here. There are hundreds of millions of barrels of sanctioned crude on the water, and in essence, by un-sanctioning them, the Treasury can create supply. We are looking at that. We are going to be announcing measures to bring relief to the market.”

Bessent’s remarks suggested that a large quantity of oil cargoes is currently floating in international waters because of sanctions placed on Russian exports following the conflict in Ukraine. According to his explanation, temporarily easing these restrictions could help release millions of barrels of crude oil into the global supply chain. By doing so, the US Treasury believes it can increase supply and ease pressure on energy markets.

He also added that there is another aspect to this policy shift that could help keep global oil prices at manageable levels. In essence, the message from Washington was that short-term flexibility in sanctions could be used as a tool to balance supply and demand.

Questions Over Washington’s Claims and Policy Consistency

The situation has also drawn attention to what many observers describe as contradictions in the US position. On one hand, officials speak as if Washington has the authority to allow or disallow India’s energy purchases. On the other hand, the same officials openly acknowledge that India’s purchase of Russian oil helps stabilise global markets.

India, for its part, has consistently maintained that its energy imports are guided by national interest rather than by directives from other countries. The country imports more than 80 percent of its crude oil requirements and has repeatedly stated that it will buy oil from wherever it is available at competitive prices. According to data from energy market trackers and trade reports, Russia has remained a significant supplier to India since 2022, when discounted Russian crude began flowing into Indian refineries after Western sanctions reduced Russia’s traditional European market.

Despite suggestions from Washington that India had stopped purchasing Russian oil at some stage, available trade data indicates otherwise. Russian oil continued to form a substantial part of India’s imports. In February 2026 alone, more than 20 percent of India’s crude imports came from Russia, showing that the supply relationship has remained strong even amid geopolitical tensions.

Indian officials have repeatedly clarified their position in parliament and public statements. The government has stressed that energy security is a sovereign matter. For a country with a large population and rapidly growing economy, stable access to affordable energy is considered essential.

Another point of debate arises from the fact that US officials themselves have now acknowledged the stabilising role played by India’s imports of Russian crude. This acknowledgment is not entirely new. In the past, India’s Ministry of External Affairs had stated that American officials had privately conveyed that continued Indian purchases of Russian oil helped maintain stability in global energy markets.

However, Washington’s stance appeared to change when additional trade pressure was applied. At one point, the United States imposed a 25 percent additional tariff on India for buying Russian oil, even though earlier discussions had suggested that the purchases were helping keep global markets stable.

The differing messages from the US administration have created confusion about the real intent behind these policies. Officials such as Bessent and Wright often present the decisions as part of a strategy designed to control global oil supply through sanctions and temporary waivers. Their statements also serve a domestic political purpose, as they frequently emphasise that Washington remains firm in its approach toward Russia while still protecting global economic stability.

In reality, India’s oil trade patterns have largely followed economic logic rather than political instructions. The country has continued to purchase Russian crude since 2022 whenever it has been available at favourable prices. In some cases, Indian buyers have avoided certain sanctioned shipping companies or financial channels to avoid legal complications, but the overall flow of Russian crude into Indian refineries has remained steady.

Recently, an increasing number of oil tankers carrying Russian crude have been seen arriving at Indian ports, reflecting continued demand from Indian refiners. At the same time, the international energy market is facing concerns about a possible supply crunch in oil and gas. Analysts say geopolitical tensions and ongoing conflicts are contributing to uncertainty in the global energy supply chain.

In a striking twist, some observers note that the current supply pressure is unfolding even as the United States becomes involved in another major international conflict. The situation highlights the complex and often contradictory dynamics that shape global energy politics, where sanctions, trade policies, and geopolitical strategies often intersect with the simple need to keep the world supplied with fuel.