The oil market was split in 2022 by Russia’s invasion of Ukraine
The Kremlin’s invasion of Ukraine has split the global energy market between countries that buy Russian oil and those that don’t. Next year could provide clues as to how long the split will last.
Thanks to continued boycotts, expanded sanctions and a new price cap that came into effect this month, Western countries and some of their allies have begun to turn away from these imports, pushing Russian producers to find new buyers for millions of barrels of oil every day. Restrictions on diesel and other fuels scheduled for February could have an even greater impact.