Saturday, January 28, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home Market

Putin warns of ‘catastrophic’ energy crisis if west boosts sanctions

7 months ago
in Market
Putin warns of ‘catastrophic’ energy crisis if west boosts sanctions
Share on FacebookShare on Twitter


Russian president Vladimir Putin has threatened “catastrophic consequences” for world energy markets if western powers impose further sanctions on Moscow, as G7 members discuss plans to try to cap Russia’s oil revenues following its invasion of Ukraine.

The Russian president admitted that sanctions were undoubtedly hurting Russia’s economy but said western powers stood to inflict more harm on themselves as they wrestle with rising inflation and a growing cost of living crisis.

“All this reveals, once again, that sanctions on Russia end up causing much more harm to those countries that impose them,” Putin told members of the government in a televised address on Friday.

“The further use of sanctions could lead to even more severe consequences, even, without exaggeration, catastrophic consequences on the global energy market,” he said.

His comments will increase concerns that Russia could look to disrupt oil supplies if G7 members move ahead with plans to try to cap the price Russia can receive for its crude, the primary source of government revenues.

The oil industry fears Russia could look to cut oil exports in retaliation if the G7 pushes ahead with its plan. Analysts at JPMorgan have warned that oil prices could soar towards $380 a barrel if Moscow slashed exports as “a way to inflict pain on the west”.

Russia has already been accused by European officials of weaponising gas exports after it cut capacity on the Nord Stream 1 pipeline to Germany by 60 per cent last month. The International Energy Agency has warned Europe to prepare for a complete cut-off of Russian gas supplies this winter, with possible rationing of fuel to industry and even homes.

Gas prices have almost doubled in the last three weeks and on Friday Uniper, Germany’s biggest buyer of Russian gas, sought a multibillion-euro bailout from Berlin, warning that supplies to Europe’s largest economy are under threat.

Households in the UK have been told to prepare for further sharp increases in energy bills this winter, with the price cap for domestic electricity and gas bills predicted to soar towards £3,400 per annum for the average household, three times the level in 2020.

Russia has already signalled a willingness to take action that could disrupt oil supplies. This week a Russian court ordered a 30-day halt to loadings of oil exports at a Black Sea port that is a key conduit for Kazakhstan’s exports. While oil flows have continued prices for regional grades of crude have surged.

In Libya, General Khalifa Haftar, who enjoys Russian support alongside backing from Egypt, has also stepped up a military campaign that has disrupted the country’s oil and gas exports in recent weeks.

“We’ve already seen Russia cut gas flows to Europe and threaten oil exports from Kazakhstan,” said Amrita Sen of analysts Energy Aspects. “It would be foolish to rule out further Russian action if the west increases sanctions.”

International oil prices have fallen in the past month as concerns about a recession have overshadowed the threat to supplies but remain above $100 a barrel, a level they had not traded at since 2014.

On Friday Brent crude was up 1.2 per cent at $106 a barrel.

Putin said western countries were attempting to convince other energy producers to increase their output in order to keep down prices “but the energy market,” he said, “does not tolerate such fuss”. 

US president Joe Biden is due to travel to Saudi Arabia next week, where requests for higher oil output from Gulf states are expected to be on the table as part of wider discussions on security in the region.

Riyadh has accelerated planned production increases under an Opec+ oil producers’ agreement but has stopped short of adding significant additional volumes to the market, warning it does not have unlimited spare capacity.

Recommended

People familiar with the kingdom’s thinking say they are concerned Russia’s output could fall sharply later this year under western sanctions.

Putin claimed that the “economic blitzkrieg” attempted by Russia’s foes had “obviously failed”, but admitted that sanctions were hitting the economy.

He said Russian oil production had grown this year despite sanctions, rising 3.5 per cent since the beginning of the year, while gas production had fallen by 2 per cent.



www.ft.com

Latest Oil News

Chevron profits slip as oil and gas prices fall

Chevron profits slip as oil and gas prices fall

January 27, 2023
Big Oil’s cash bonanza | Financial Times

Big Oil’s cash bonanza | Financial Times

January 26, 2023
NYC pension schemes test support for climate action at bank meetings

NYC pension schemes test support for climate action at bank meetings

January 25, 2023
Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

January 24, 2023
Tags: boostscatastrophiccrisisEnergyPutinsanctionswarnswest
Previous Post

Oilfield services jobs rise again for eight straight months of growth

Next Post

Gantz Reveals ‘Unusual’ Iranian Military Activity in the Red Sea

Related Posts

Chevron profits slip as oil and gas prices fall

Chevron profits slip as oil and gas prices fall

by Oil Market News
January 27, 2023
0

Chevron announced record earnings for 2022 but its fourth-quarter profits slipped from previous months in a sign that Big Oil’s...

Big Oil’s cash bonanza | Financial Times

Big Oil’s cash bonanza | Financial Times

by Oil Market News
January 26, 2023
0

This article is an on-site version of our Energy Source newsletter. Sign up here to get the newsletter sent straight to...

NYC pension schemes test support for climate action at bank meetings

NYC pension schemes test support for climate action at bank meetings

by Oil Market News
January 25, 2023
0

New York City has filed demands for tougher climate change action from US banks on behalf of retirement schemes worth...

Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

by Oil Market News
January 24, 2023
0

The “Big Three” international oilfield services groups last year registered their most profitable 12 months since the heyday of the...

EU/diesel: loss of Russian imports supportive for independent refiners

EU/diesel: loss of Russian imports supportive for independent refiners

by Oil Market News
January 23, 2023
0

On the whole, the ban on Russian crude oil has worked well. It has lowered revenues for Russia without causing...

Dutch government aims to close Europe’s largest gasfield this year

Dutch government aims to close Europe’s largest gasfield this year

by Oil Market News
January 22, 2023
0

The Netherlands wants to close Europe’s largest gasfield this year because it is “very dangerous” to keep operating it, according...

Next Post
Gantz Reveals ‘Unusual’ Iranian Military Activity in the Red Sea

Gantz Reveals 'Unusual' Iranian Military Activity in the Red Sea

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

Marathon Petroleum and Phillips 66 cruise past estimates on fuel demand surge

Marathon Petroleum and Phillips 66 cruise past estimates on fuel demand surge

3 months ago
Is OPEC+ losing influence over production and prices?

Is OPEC+ losing influence over production and prices?

2 weeks ago
Global stocks close in on 4-week highs, oil rises on hopes of ‘soft landing’

Global stocks close in on 4-week highs, oil rises on hopes of ‘soft landing’

3 weeks ago
Trick Follows Treat For Big Oil As Biden Pushes New Tax On Windfall Profits

Trick Follows Treat For Big Oil As Biden Pushes New Tax On Windfall Profits

3 months ago
Opinion | Biden Turns the U.S. Into a Shadow Member of OPEC – The Wall Street Journal

Opinion | Biden Turns the U.S. Into a Shadow Member of OPEC – The Wall Street Journal

4 weeks ago
ADVERTISEMENT
Bob Simpson’s TXO Energy goes public, soars 10% on first trading day

Bob Simpson’s TXO Energy goes public, soars 10% on first trading day

January 27, 2023

Internet of Things-as-a-Service to Enable Improved Opportunities

January 27, 2023

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

January 27, 2023

White House blasts Big Oil stock buybacks again as Chevron profits double

January 27, 2023

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

January 27, 2023

Trinity To Spud Jacobin Well In Second Quarter Of 2023

January 27, 2023

Crude Oil

German Crude Oil Imports Rose 11% in 2022 As Crude Import Bill Doubles

German Crude Oil Imports Rose 11% in 2022 As Crude Import Bill Doubles

January 27, 2023
Europe Is Diversifying Its Diesel Sources Ahead Of Ban On Russian Fuel

Europe Is Diversifying Its Diesel Sources Ahead Of Ban On Russian Fuel

January 26, 2023
Opinion | Should the Strategic Petroleum Reserve Be Used Now?

Opinion | Should the Strategic Petroleum Reserve Be Used Now?

January 25, 2023
Rising Crude, Oil Products Inventories Weigh On Oil Prices

Rising Crude, Oil Products Inventories Weigh On Oil Prices

January 24, 2023

Investing

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

January 27, 2023
ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

January 26, 2023
Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

January 25, 2023
Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

January 24, 2023

Market

Chevron profits slip as oil and gas prices fall

Chevron profits slip as oil and gas prices fall

January 27, 2023
Big Oil’s cash bonanza | Financial Times

Big Oil’s cash bonanza | Financial Times

January 26, 2023
NYC pension schemes test support for climate action at bank meetings

NYC pension schemes test support for climate action at bank meetings

January 25, 2023
Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

January 24, 2023

OPEC

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

January 27, 2023
Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

January 26, 2023
Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

January 25, 2023
FG tasks 2023 OPEC’s President on attracting investments in oil

FG tasks 2023 OPEC’s President on attracting investments in oil

January 24, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.