Sanctions on Russian oil and gas will hammer global market, Novak says

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MOSCOW - Russian Deputy Prime Minister Alexander Novak said on Wednesday global energy markets would collapse if sanctions were imposed on oil and gas from Russia, a major exporter of hydrocarbons.

has been considering expanding sanctions on Moscow imposed over the Ukraine crisisThe United States and Britain, both far less reliant on Russian fuel, have taken steps to ban Russian oil imports.

"Russia is the largest supplier, the share of Russian energy resources on global markets stands at around 40 per cent. Obviously, oil and gas markets would collapse without Russian hydrocarbons in the event that sanctions were imposed," Novak said. He told Russia's lower house of parliament that there was a shortage of crude in global markets of about 1 million barrels per day .Novak said Europe could face a shortage of diesel, with inventories now at the lowest since 2008.showed a failure to understand the energy market balance and would fuel inflation.

Germany halted the Nord Stream 2 gas pipeline project, which was designed to double the flow of Russian gas heading direct to Germany, The benchmark Dutch front-month gas contract hub hit a record intra-day high of €335 per megawatt hour this month amid the conflict in Ukraine, which is also a transit point for gas to Europe. It now trades at €103.

 

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