Weaponized oil

Brent surged above $81 a barrel, the highest price in 4 months, after the US rolled out new sweeping sanctions on Russia’s oil industry, targeting exporters, insurers, and over 150 tankers. India and China may be forced to seek new suppliers, tightening an already fragile market. Meanwhile, OPEC+ has plans to ease output curbs later this year, a move that could offset potential Russian losses. At ECP, we are invested in the energy sector as we are attracted by the cash flow generation of these companies and their low valuation. We would not be surprised to see the oil price running up further in light of further geopolitical tensions.