When the Trump administration slapped sanctions on Iran in November, European oil refiners turned to Venezuelan sour crude oil as a replacement — and after Trump announced sanctions on Venezuela to pressure President Nicolas Maduro out of office, "European refiners have been left competing to secure as much medium, sour Russian Urals as they can," Reuters reports. Trump's sanctions have removed at least 800,000 barrels a day from the market, and with OPEC simultaneously slashing the supply of sour crude oil, Russia is cashing in.
The U.S. is producing more oil than ever, but it is mostly light, sweet crude, so "it is not an alternative" for Europe, Reuters says. "Thanks to the higher premiums, Russia made an additional $140 million in March from seaborne and pipeline deliveries versus October prior to the sanctions coming into effect."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
-
Georgia's new foreign influence billUnder the Radar Critics claim the 'Russian law' could stifle dissent and wreck the country's chances of joining the EU
-
'Making a police state out of the liberal university'Instant Opinion Opinion, comment and editorials of the day
-
8 looming climate tipping points that imperil our planetThe Explainer New reports detail the thresholds we may be close to crossing
-
Empty-nest boomers aren't selling their big homesSpeed Read Most Americans 60 and older do not intend to move, according to a recent survey
-
Brazil accuses Musk of 'disinformation campaign'Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
-
Disney board fends off Peltz infiltration bidSpeed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
-
Disney and DeSantis reach detenteSpeed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
-
Visa and Mastercard agree to lower swipe feesSpeed Read The companies will cap the fees they charge businesses when customers use their credit cards
-
Reddit IPO values social media site at $6.4 billionSpeed Read The company makes its public debut on the New York Stock Exchange
-
Housing costs: the root of US economic malaise?speed read Many voters are troubled by the housing affordability crisis
-
Feds cap credit card late fees at $8speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
