Washington, March 8 (IANS) US Energy Secretary Chris Wright said on Sunday that more than 100 million barrels of Russian crude are currently floating at sea waiting to be delivered to China, a backlog the US believes could temporarily ease global energy market disruptions if redirected to other refineries.
"There's more than 100 million barrels of floating Russian crude waiting in line to deliver to China," Wright said in an interview with CBS News.
"That's going to be sold, it's going to be refined, but that could be one or two months from now."
The comments came as global oil markets react to disruptions linked to the ongoing conflict involving Iran, which has rattled shipping routes and pushed up fuel prices.
Wright said Washington has taken what he described as a pragmatic step to help ease the supply dislocation affecting refineries in Asia and Europe.
"So in a pragmatic way, with no change in US policy towards Russia, we told the Indians, bring that into your refineries," he added.
"You know, if you, if you're feeling a shortage of crude, prices are being bid up, draw down that Russian crude stocks that are sitting right offshore."
According to Wright, the current spike in oil prices is driven more by logistics disruptions than by an actual shortage of crude supplies.
"The world is very well supplied with oil. There's no energy shortage at all in the Western Hemisphere," the US Energy Secretary said.
"The United States is a net exporter of oil, a large net exporter of natural gas."
However, he noted that refineries in Europe and Asia were facing interruptions because normal shipping routes and supply flows had been affected.
"But there is massive energy stores around the world," Wright said, adding: "What you're seeing is emotional reactions and fear that this is a long term war. This is not a long term war."
He said the US military was currently focused on restoring stability in the Strait of Hormuz, a vital oil transit corridor through which nearly 20 million barrels of crude typically pass each day.
"All of our military assets right now are focused on ending Iran's ability to kill their neighbours, threaten American soldiers and threaten ship traffic in the Strait of Hormuz," Wright said.
He added that the conflict had already reduced Iran's operational capabilities.
"Their missile launches are down 90 per cent, the drone launches are down by more than 80 per cent," Wright said.
"I think in the relatively near term, you're going to see their capacity so low that we'll see more normal ship traffic return to the Strait of Hormuz."
Wright added that some early tanker movements may require direct protection from the US military.
"Yes, there could be there -- early tankers probably will involve some direct protection by the US military," he said, adding that the US was engaging with shipping operators seeking to move tankers out of the Gulf.
The US Energy Secretary also said the Trump administration remained focused on limiting the impact of the crisis on fuel prices.
"Right now, we're worried about Iran and fixing a 47-year problem there, and we're worried about American consumers," Wright added.
"We want to stop the rise in gasoline and diesel prices."
--IANS
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