The European Union’s ban on Russian oil imports by sea, along with the Group of Seven’s plan to limit oil prices from Russia early next month, will not guarantee a sustained increase in prices or supply. will tighten further in the coming days.
“In short, sanctions on Russia should help boost prices,” said Matt Smith, lead oil analyst, Americas, at Kpler. However, they may have limited effect, as Russian barrels are “rerouted and not taken off the market”, while the price ceiling still has so much uncertainty surrounding the impact. Its actions may “be muted due to workarounds or may simply be ineffective. “
