by Tsvetana Paraskova at Oil Price
- The Ukraine war has triggered the largest reshuffle of oil flows since the 1970s.
- A new Iron Curtain is now upending oil flows as Europe turns to the U.S., the Middle East, and Africa for oil supply.
- Changes in oil flows will result in higher insurance, shipping, and financing costs for cargoes
The biggest reshuffle of oil trade flows since the Arab oil embargo of the 1970s is underway—and things may never return to normal. The Russian invasion of Ukraine and the sanctions on Russian oil exports are changing global oil trade routes. Over the past nearly five decades, oil flowed more or less freely from any supplier to any customer in the world, except for sanctions on Iran and Venezuela in recent years.
This free energy trade is now over, after the Russian aggression and the Western sanctions that followed, plus Europe’s irreversible decision to cut off its dependence on Russian energy at any cost.
A New Cold War In The Oil Market…