Andurand says there’s ‘room’ to sanction Russian oil exports

Famed oil trader Pierre Andurand says there is room to sanction some Russian oil exports and that economies can tolerate prices over $100 a barrel.  

Andurand estimated that the market would lose about 3 million barrels per day of crude if Russia’s oil exports were sanctioned, assuming China would take an additional 1 million barrels per day. 

“This is an amount the world can absorb to lose to some extent,” Andurand said on Bloomberg TV. The Persian Gulf countries would increase production and the International Energy Agency countries would need to take some oil from the emergency reserve to make up for it, Andurand said.

The oil trader also argued strategic petroleum reserve releases should not be used to bring oil prices down, but during times of geopolitical turmoil.

“We are in the middle of a multiyear deficit” in the oil market, Andurand said. “If we start using the SPR early, it’s shooting yourself in the foot.”