OMC stocks in focus after Trump administration allows to purchase Russian oil for 30 days

Shares of leading oil marketing companies and oil refinery companies like Reliance Industries, Bharat Petroleum, Hindustan Petroleum, Indian Oil Corporation, Oil India will be in focus after the US Treasury department announced allowing India a 30-day-waiver to purchase Russian oil.

Treasury Secretary Scott Bessent on Thursday said, "President Trump's energy agenda has resulted in oil and gas production reaching the highest levels ever recorded. To enable oil to keep flowing into the global market, the Treasury Department is issuing a temporary 30-day waiver to allow Indian refiners to purchase Russian oil,"

He said this "deliberately short-term measure" will not provide significant financial benefit to the Russian government, as it only authorises transactions involving oil already stranded at sea.

"India is an essential partner of the United States, and we fully anticipate that New Delhi will ramp up purchases of U.S. oil. This stop-gap measure will alleviate pressure caused by Iran's attempt to take global energy hostage,” Bessent said in a post on X.

US President Donald Trump had imposed 25% punitive tariffs on India for buying Russian oil, with the administration asserting that Delhi's purchases were helping fuel Russia's war against Ukraine.

Last month, the US and India announced they had reached a framework for an Interim Agreement on trade, and Trump issued an Executive Order removing the 25% punitive tariffs on India, noting the commitment by New Delhi to stop importing energy from Moscow and increase purchasing American energy products.

The Brent crude oil prices spiked above $85 per barrel on Thursday after the West Asia crisis escalated further. The Strait of Hormuz remains at the centre of the crisis and witnessed nearly 90% drop in the trading activity after the fallout of war since last Friday. Experts beleive, if the war continues for few more weeks, the crude oil prices could soon spike to $100 per barrel levels.

The general license issued by the Treasury Department said it does not authorise any other transactions or activities prohibited by any other Executive order, including any transaction or activity involving Iran, the Government of Iran, or Iranian-origin goods or services that is prohibited by the Iranian Transactions and Sanctions Regulations.

According to early estimates for March, India held 9-10 days of special petroleum reserves + commercial inventories and a total estimated cover of 6-8 weeks.