Russia chokes major oil pipeline in further threat to global supplies

Russia chokes major oil pipeline in further threat to global supplies

Russia is throttling back capacity on a major pipeline that sends crude oil to global markets, driving prices higher and raising fears that Moscow was prepared to retaliate against western sanctions by curbing its own energy supplies.

Up to 1mn barrels a day of oil shipped through the Caspian Pipeline Consortium’s pipeline from central Asia to the Black Sea could be cut for up to two months while repairs are made to storm-damaged loading facilities, Russia’s deputy energy minister said in a statement on Tuesday carried by the news agency Tass.

The supply interruption comes on the eve of US president Joe Biden’s trip to Europe, where EU countries are expected to discuss imposing sanctions on Russia’s oil sector in response to country’s invasion of Ukraine. The US has already banned Russian petroleum imports.

International oil prices rose by more than 2 per cent to $117 per barrel immediately after the pipeline announcement before falling back to $115 a barrel.

Analysts raised questions about the timing of the reported storm damage, as none of the pipeline’s western partners had been able to inspect the facilities.

“If a storm shuts down infrastructure or if Russia shuts down infrastructure, Russia can decide when it reopens infrastructure,” said