A year after Ukraine invasion, oil market much changed

A year after Russia’s invasion of Ukraine, the oil market has become more fragmented and uncertain, a dynamic expected to boost crude prices over the long term.

Condemnation of Russia by Western governments has essentially severed Europe from Russian supplies, leaving it more reliant on the Middle East and the United States.

That shift means cheaper Russian energy imports for China and India, while countries that refuse to buy Russian crude must pay a premium to import from other suppliers.

The oil market “is radically different in some ways than it was before the invasion of Ukraine,” said Jim Burkhard, head of research for oil markets, energy and mobility at S&P Global Commodity Insights.