Ripple effects from the war in Ukraine, as well as trade tensions between the US and China, are intensifying in the Americas oil market. Ukraine’s attacks on Russia’s energy infrastructure — with apparent US backing — are disrupting flows of product to Latin America. Reciprocal port fees from the world’s two largest economies, meanwhile, are likely to boost freight rates, adding costs to shipping petroleum. The most acute impacts of these developments will be geographically bifurcated, with Russia-related issues affecting the Atlantic Coast and port fees adding more headwind to an already strained US West Coast market at a time when China is betting on more exports.
