Russian oil trade in disarray over sanctions as prices blast through $100 | Reuters

Russian oil trade in disarray over sanctions as prices blast through $100 | Reuters

Russian oil trade was in disarray on Tuesday as producers postponed sales, importers rejected Russian ships and buyers worldwide searched elsewhere for needed crude after a raft of sanctions imposed on Moscow over the war in Ukraine.

Numerous nations imposed sweeping sanctions against Russian companies, banks and individuals following Russia's invasion of Ukraine last week and global majors announced plans to leave multi-million-dollar positions in Russia.

Even though sanctions have not specifically targeted the oil trade, buyers throughout Asia, Europe and North America have vanished, sending worldwide benchmarks to over $100 a barrel.

Russia is the second largest exporter of crude worldwide, trailing only Saudi Arabia, as it ships out 4 to 5 million barrels of crude every day, along with 2 to 3 million barrels of refined products. With demand already surging past pre-pandemic levels and major producers struggling to keep up, market players are increasingly fearful that prices will keep rising.