Ukraine crisis: US sanctions on Russian oil to leave more cargoes at sea with no buyers

Ukraine crisis: US sanctions on Russian oil to leave more cargoes at sea with no buyers

JP Morgan estimated around 70% of Russian seaborne oil was struggling to find buyers.

By Reuters Published: Wed 9 Mar 2022, 6:47 AM

The US ban on Russian oil and gas imports is likely to leave more cargoes at sea with no buyers, and the European Union's decision to continue imports was unlikely to make much difference to disarray in Russian oil trade, analysts said on Tuesday.

US President Joe Biden on Tuesday imposed an immediate ban on Russian oil and other energy imports in retaliation for the invasion of Ukraine and Britain said it would phase out imports through the end of 2022.

The European Union did not join the ban because it is more dependent on Russian oil and gas supplies. Gas flows to Europe have so far been steady since the crisis, which Russia calls a "special military operation", but Moscow on Monday warned that sanctions on Russian oil could prompt it to close a major gas pipeline to Europe.

Existing disruption to oil trade, caused by traders steering clear of Russian supplies due to concern they may unwittingly fall foul of sanctions imposed on Russia, is likely to worsen after the US ban, traders said. Buyers will also be concerned about