Russian oil is becoming even less welcome in the global petroleum market, as traders fret over the possibility of a U.S.-led ban on supplies from the country and a recent purchase by Shell PLC drew condemnation. TotalEnergies SE has said its traders will no longer buy Russian crude.
U.S. lawmakers have announced the outline of bipartisan legislation to bar imports of Russian oil into the U.S., though European Union governments are divided over whether to join the effort. Traders who handle Russian crude — spanning both Europe and Asia — said the possibility of a ban, in conjunction with the response to Shell buying Russian crude on Friday, has made the market more wary of touching Russian barrels.
A tension — between economic imperative and political pressure to respond to the invasion — is dragging the oil market toward a watershed: Do governments push to keep barrels flowing at elevated prices that are high enough to enrich Moscow, or do they take decisive steps to remove large amounts the nation’s supplies for a prolonged period? The latter approach would risk sending the cost of fuel spiraling, boosting inflation and causing economic damage.
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