Crude Gains Evaporate as Russia Seen Too Big to Sanction: Energy
Oil traders are betting that Europe is too hooked on Russian fuel for the region to back energy sanctions against President Vladimir Putin.
After jumping as much as 3 percent on March 3, the most in six months, benchmark Brent crude is now below where it was last week. Europe probably won’t back oil and gas sanctions for Russia’s incursion into Crimea, an autonomous province in Ukraine, because of the economic damage it would cause, analysts at Goldman Sachs Group Inc., Bank of America Corp. and Morgan Stanley say.
“Europe is too interlinked with Russia in terms of energy supplies to do anything,” Olivier Jakob, the managing director of Zug, Switzerland-based researcher Petromatrix GmbH, said by phone March 4. “We just import too much oil from Russia.”
Mar 06, 2014