Capturing the Value From Supply-Side Shocks in the Heavy Crude Market

The Russian-Ukraine conflict and sanctions on Russian crude oil flows have significantly affected world oil markets. Price volatility has increased, flows have been re-directed and there is considerable uncertainty concerning future energy policy. The implications of these changes affect all market segments including those where Russian supplies have been limited or absent. Thus, recent events have exacerbated problems observed in the already tight global heavy crude sector, where key exporters have been constrained either by sanctions (Iran and Venezuela) or by logistic bottlenecks (Canada).