On June 2, local time, according to EU sources, the 27 EU member states officially approved the sixth round of sanctions against Russia after a one-day delay due to Hungary’s opposition. Up to now, crude oil has been on the rise as a whole, which has led to the rise of products and all links in the same industry chain.
The core of the sixth round of sanctions against Russia is the oil embargo, which will gradually reduce Russia's oil imports by 75% and expand to 90% by the end of 2022. In fact, the oil embargo is already a dangerous move for EU countries. On June 6, local time, Dmitry Medvedev, vice chairman of the Russian Federation Security Council, published on social networking sites his comments on the sixth round of EU sanctions against Russia. The evaluation said that the purpose of the EU is to destroy Russia's economy, but in fact it disrupts the world economy. After refusing to import Russian oil, Europeans had to risk the world to find raw materials of the same quality, in which case there would be shortages of some types of fuels, such as diesel. In addition, the prohibition of insuring Russian oil carriers would lead to difficulties in transporting oil to third countries, but the problem could be solved by signing intergovernmental agreements with third countries and providing state guarantees. The sanctions on excluding the three main banks, including Sberbank, from the SWIFT system are another attempt to create difficulties for the Russian economy, but these banks are still operating normally and bank settlements within Russia will not be affected by the SWIFT system. The sanctions against Russia's state depository and settlement are to create a picture of Russia's "debt default", but Russia has never refused to repay its debts.
Under the pressure of high global oil prices, the chemical market will continue to have a high price pattern in 2022. The three-month stalemate in Russia and Ukraine has caused a slowdown in European and even global economic activities. The recently launched sixth round of sanctions and crude oil bans It may further exacerbate the imbalance between supply and demand, causing crude oil and its downstream products to rise. With the current economic recovery, presumably prices will remain high in the future.
