EU ban to hurt Russian oil products more than crude

Significance

An EU ban on Russian refined oil and an accompanying price cap may do more immediate damage than earlier restrictions on crude, as petroleum products are more difficult to place in new markets.

Impacts

• Geopolitical divisions will distort global energy markets.
• Falling output by the OPEC+ group and rising Chinese demand could set a floor under global oil prices.
• The central bank says the economic fallout of oil restrictions is incorporated into its monetary policy.