The Oil Situation

Kent WA

Description

The Russian invasion of Ukraine is shaking up a fragile global oil market. Oil companies have started pulling out of russia and with tough sanctions in place oil prices soar. Traders calculate that supplies will struggle to cushion the effect from any significant disruption in Russian fossil fuel exports. Demand for oil has outpaced production growth as economies slowly rebounded from the worst of the pandemic, leaving the market with a small buffer to mitigate an oil-supply shock. Russia is the world’s third-largest oil producer, the conflict in Ukraine leads to a substantial decrease in the flow of Russian barrels to market. A tight balance between supply and demand. "In 2021, the U.S. imported an average of 209,000 barrels per day (bpd) of crude oil and 500,000 bpd of other petroleum products from Russia. Although Russian crude accounts for only three percent of U.S. crude oil imports and about one percent of total crude oil processed by U.S. refineries—Russian crude oil imports are important to refineries on the West Coast and Gulf Coast." https://www.afpm.org/newsroom/blog/oil-and-petroleum-imports-russia-explained