Roughly 36% of the EU’s oil imports coming from Russia. Whether Russia manages to offload its sanctioned crude and how much it can sell would affect oil prices globally. “The US should have used strong preemptive sanctions on Russia and been tougher with OPEC oil producers to increase oil output.”

Oil prices will not decline any time soon and the fallout of Russian sanctions will be felt for a few years,” said Hossein Askari, a professor at the George Washington University School of Business. “What is going on now will change oil-natural gas trade into the future. Russia is the world’s third-largest oil producer after the US and Saudi Arabia, and the second largest crude oil exporter behind Saudi Arabia, according to the International Energy Agency. “The Russian response commodity obviously will bear close watching,” said Helima Croft, head of global strategy at RBC Capital Markets, in a note on Tuesday. Its actions would have a global economic impact - unless OPEC intervenes.ĮU leaders on Monday agreed to ban 90% of Russian crude by the end of the year as part of the bloc’s sixth sanctions package on Russia since it invaded Ukraine. Moscow could respond to European sanctions on Russian oil by seeking other buyers for its crude or cutting production to keep prices high.