Will US Sanctions on Russian Oil Upend the Global Market?

The US government jolted energy markets when it announced sanctions on Russia’s two biggest crude oil producers on Oct. 22. All eyes are now on how global oil supply and prices will react after the measures took effect on Nov. 21.

Russia’s exports — about 7.4 million barrels a day, according to the International Energy Agency — account for about 7% of global crude oil and refined fuel consumption. The latest penalties on Rosneft and Lukoil, combined with sanctions imposed earlier this year, mean that firms shipping the majority of Moscow’s oil to overseas markets are now blacklisted.