The price of Brent crude exceeded $112 a barrel this morning. There is, as yet, no interruption in supply from Russia, nor any ban on buying their oil (save for in Canada) – but western companies are reported to be exercising a voluntary boycott. Either that, or they are sceptical of whether their orders will actually arrive. Turkey has already closed the Bosporus Straits to warships. Much of the oil exported to Europe takes this route.
Even a voluntary refusal to buy Russian oil will have serious repercussions for markets. Russia produces around 12 per cent of the world’s oil – which is a huge chunk to lose. Except, that is, not everyone is refraining from buying it. One of the consequences of a western boycott of Russian oil could be to lower prices for China, India and Pakistan, which are served via pipelines through Kazakhstan.
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