The Trump-Putin meeting this Friday and the oil trade spat with India have been hogging the headlines these days, but meanwhile, the tariff war continues—and it may end with a complete rearrangement of global supply chains.
The EU’s move to restrict fuels such as diesel made from Russian crude could have some market impact, as Europe imports the fuel from India, which in turn buys large amounts of Russian crude. Diesel markets have been showing signs of tightness for several weeks, and prices strengthened in early European trading relative to crude.
The conglomerate began to shrink its presence in oil several years ago, when it sold oil sands operations to Canadian Cavalier Energy. The company was following in the footsteps of international energy majors, which staged an exodus from the oil sands industry amid tightening regulations that put a burden on costs and ease of doing business in the area.