Moscow has weaponized its natural gas supplies to Europe for months and is now actively trying to disable Ukraine’s electricity network. Consumer countries have become competitors as they race to secure scarce energy supplies. Fractures are visible in the decades-old Saudi-U.S. oil relationship. Even in clean energy, leaders such as Joe Biden talk of a new battle to dominate supply chains.
The potential unraveling of the old order in the global oil market will reach a defining moment over the next week when Europe starts to block Russian seaborne crude from the continent in one of the strongest responses yet to Vladimir Putin’s brutal invasion of Ukraine.
The new sanctions will also stop European companies from insuring vessels carrying Russian oil to third countries, unless those countries accept a price for the oil dictated by western powers. In other words, western countries will attempt to impose a cap on the price of oil sold by Russia.
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