The End of Cheap Oil? Sanctions Spark Scramble for Supply

Just a month ago, the dominant narrative in energy news sections was one of surplus supply and consistently weak Chinese demand. Now, some are starting to talk about a deficit, especially after the Biden administration’s farewell sanction package aimed at Russia. John Kemp wrote a column about the state of global supply earlier this month, noting that “U.S. crude oil inventories have depleted much faster than normal since the middle of 2024.” Usually, the depletion of inventories is a result of strong demand, and indeed, U.S.…