New sanctions on Russia could hit world oil supply | Sunday Observer

New sanctions on Russia could hit world oil supply

5 June, 2022

OPEC+ is expected to stick to its current production agreement for now, but behind the scenes the oil-producing nations could be planning for the day when Russia’s contribution to world oil supply could be far reduced.

The European Union’s move to ban most Russian oil and put new sanctions on shipping insurance could seriously hamper Russia’s ability to export crude.

The EU leaders agreed this week to an embargo on oil and petroleum products, with a temporary exemption for some oil delivered by pipeline. “If they prohibit insurance on tankers carrying Russian oil, that will really aggravate the scramble for barrels, and certainly it’s going to be a turbulent summer,” said Daniel Yergin, vice chairman S&P Global. - CNBC

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