Russia sanctions to create oil market slowburn

Venezuela and Iran offer clues to potential effectiveness of the measures

Moscow’s proposed move to cut 500,000bl/d of crude output in March offered a stark reminder to the oil market: the squeeze on Russia cuts both ways. As Western powers try to put pressure on what was, before the sanctions, the world’s biggest oil exporter, the market is facing up to the reality that Russia will be able manage and that there will be dislocation rather than significant disruption for both producers and consumers for a long time to come. Just look at the other key sanctioned oil producers, Venezuela and Iran. While very different from Russia’s circumstances, both countries have also suffered internally but either found ways circumnavigate measures imposed on them and mitigate th