Oil's Russia-Sized Hole—Part 2

Moscow's Sanctions Noose Continues to Tighten

• Russia’s war and consequent sanctions are having a deep impact on Russian oil production, which fell by nearly a million barrels per day in April—the steepest production collapse of its kind since the fall of the Soviet Union—before stabilizing somewhat in May. 

• The sanctions-strained oil industry has been forced into staggering realignment; estimated crude oil exports have also fallen despite an observed increase in seaborne shipments, with those exports shifting both within Europe (north to south) and sailing far further to buyers in Asia.

• Moscow’s sanctions noose continues to tighten on the back of the EU import ban and the recently-announced EU/UK/US insurance ban, which look to further starve the country of war-funding by constraining export options.