Russia Recalls Ambassador from U.S. After Biden Calls Putin a “Killer”
March 19, 2021
The energy markets got slammed in yesterday’s trading, falling for the fifth straight session, with both Brent crude oil and WTI crude oil losing more than 7% over those last five trading sessions. The rising cases of COVID-19 and the slow rollout of vaccines in Europe, increased tension between the US and Russia, the government inventory data showing builds in crude, gasoline and distillate stocks, a rising US dollar index, and speculators taking profits all contributed to the downside.
A senior Russian lawmaker said Russia wants an apology from the United States after President Joe Biden said he thought Vladimir Putin was a killer. Russia recalled their ambassador to the US for urgent consultations over the future of US-Russia ties. The market fears that one way Russia could retaliate would be to flood the market with oil, targeting US shale producers.
Vitol’s head of origination, Chris Blake, said the increase in oil shipments from Iran, despite the US sanctions, is destabilizing energy markets. He said if those barrels continue to trade through unconventional channels, it is very destabilizing for the market because nobody understands what is coming.