How Sanctions on Russia is changing Oil and Gas Scenario(SHORT)

After Russia invaded Ukraine on 24th Feb, the prices of Crude Oil and Natural Gas started touching sky-high. How this war has affected oil and gas as well as geopolitics lets have a brief look.

# Russia is the biggest exporter of natural gas to Europe(as well as overall). Europe therefore very smartly didn't ban those Russian banks from SWIFT payment system through which they pay Russia for the gas.

# Germany has halted the progress of NORD STREAM 2 pipeline( a gas pipeline from Russia's Siberia to Germany)

# USA(who has the world's 4th largest gas reserve) have started to export to Europe through ships in LNG form. And planning to export more to Europe.( War is a blessing in disguise for many)

# Cost of importing through ship is way higher than importing through pipelines. The gas coming from ships have to further regassed.

# Europe is looking for other long term and renewable ways to diversify gas production.

Lets talk about OIL NOW.

# World's second largest exporter is on the verge of being out from the global oil market courtesy of US. US had banned the import of Russian oil.

# Russia offered oil to India at discounted prices, also seeks investment in their

oil sector.

# China is all set to take advantage of cheaper Russian oil.

# World's largest producer of oil, import most of its oil from Gulf Countries( USA's oil fields are not nationalized; are in the hand of private players, who export its oil at much higher prices)

# To control oil prices through increasing oil production, US president Joe Biden called leaders of Saudi Arabia and United Arab Emirates, however they didn't answered it. LOL!!

# After pushing 2/3rd of Venezuela into poverty through sanctions, US now is in talks with Venezuela to import oil in favour of lifting off sanctions.( The Latin America has the biggest oil reserves in the world)

# One of the clause of the proposed deal is USA will control oil exports of Venezuela.

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Further read: https://www.dw.com/en/russian-gas-edging-toward-extinction-in-europe/a-61077614

https://indianexpress.com/article/explained/russia-ukraine-war-us-iran-venezuela-oil-supply-7815144/