The United States granted a 30-day waiver to countries that want to purchase Russian oil or?petroleum stranded on the sea. This drew criticism from Germany and its allies in Europe, but was welcomed by Moscow.

The U.S. Treasury secretary Scott?Bessent stated that the waiver was intended to'stabilise the global energy markets, which were roiled by war with Iran. However, it could complicate Western efforts to deny Russia revenue to pay for the war in Ukraine.

The oil prices in Asia eased Friday morning after the U.S. waiver was announced. According to Russia's presidential representative Kirill Dmitriev this would affect 100,000,000 barrels of Russian crude. This is equivalent to nearly a full day's global production.

German Chancellor Friedrich Merz declared that any attempt to relax Russia sanctions is wrong. His Economy Minister Katherina Riche stated that the decision was likely driven by U.S. domestic pressurization.

Six members of the G7 were very clear in their opinion that it was not the right signal. Merz said at a Norwegian press conference that we learned today morning that the American Government has decided to do something else.

"Again, this is incorrect. There is a price problem, but not a problem of quantity. "I would also like to know if there were any other reasons that led the American government in making this decision," said he.

Norway's prime minister Jonas Gahr Stoere said that energy sanctions against Russia should not be lowered, echoing remarks made earlier this week by French President Emmanuel Macron as well as European Commission President Ursula von der Leyen.

RUSSIA WELCOMES US DECISION

Dmitry Peskov, Kremlin spokesperson, told reporters that the U.S. action was meant to stabilize world energy markets.

Peskov stated that "our interests are aligned in this regard."

"... The situation is fraught, he said, with the danger of a "growing crisis" in the global energy industry... Without "significant volumes of Russian crude oil", market stabilisation would be impossible.

Data analytics firm Vortexa reports that around 7.3 millions barrels of Russian-origin oil were in floating storage while 148.6million barrels were in vessels in transit.

According to LSEG data and sources, up to 420,000 metric tonnes of diesel and gasoline are in floating storage. These products could be sold on the market.

Washington's decision comes almost two weeks after Israel and the U.S. began their attacks on Iran, a war of aerial warfare that has paralyzed the shipping through the Strait of Hormuz.

The International Energy Agency, a 32-nation organization, said that the Middle East war was causing the largest oil supply disruptions in history.

Kpler, a vessel tracking service, said that the waiver in the U.S. was unlikely to generate significant new demand.

"Most of the cargos appear to have been sold to Asian buyers, primarily India. The?measure' allows Russian barrels that are already in transit to finish their journey and discharge, it stated.

WAIVER IS VALID TILL 11 APRIL

The license issued by Washington on Thursday authorizes the delivery and sale of Russian crude oil, petroleum products and other fuels loaded on vessels before March 12, valid until midnight Washington time April 11, 2019.

The White House is concerned that the rise in oil prices could hurt U.S. consumers and businesses ahead of November's midterm elections when Trump and his fellow Republicans hope to maintain control of Congress.

The sanctions were?relieved after a phone call between Trump, and Russian President Vladimir Putin in March and Dmitriev's subsequent visit to the U.S. to discuss the energy crisis with an American delegation including?Trump’s special envoy Steve Witkoff, and Trump's daughter-in-law Jared Kushner.

After?the Treasury's announcement, Thailand's Deputy Premier Phipat Ratchakitprakarn stated that?his nation was prepared to buy Russian crude oil and was preparing for negotiations.

Japan said Friday that it will also consider buying Russian crude.

Michael Shanks, British Energy Department Minister, told BBC radio Friday that the UK Government would not loosen its sanctions against Russia. He described the timing as "a critical moment in the Russian aggressiveness against Ukraine". (Reporting and writing by Bureaus; editing by Gareth Jones).

(source: Reuters)