Will US sanctions on Russian oil work? It depends on how success is measured

A common view in the crude oil market is that Western sanctions against Russia’s exports are fairly pointless as the market quickly devises ways to keep cargoes flowing.

This means that any new measures imposed only result in a fleeting boost to prices, which fades in the face of the reality of virtually uninterrupted flows.

The same dynamic may be at play with U.S. President Donald Trump’s latest sanctions, announced last week, which targeted Russia’s two largest oil companies, Lukoil and Rosneft.