US President Joe Biden has said the oil embargo will target a “major artery in the Russian economy”, but China’s markets suggest its energy giants are adjusting to sanctions, even as Moscow faces a major recession. Higher energy prices also risk leading Western economies into recession as households are squeezed by rising costs. Mr Putin claimed last week that sanctions were proving “more harmful” to countries that impose them. However, economists expect the Russian economy to withstand a two-year recession. Analysts expect oil prices to remain high as Chinese demand recovers after the lockdowns. Mark Haefele, head of investment at UBS, said: “Demand for crude from China, the world’s largest importer, needs to recover slowly as mobility restrictions loosen. “Crude stockpiles must remain limited. “A commitment by OPEC + to increase production is unlikely to lead to a significant increase in global supplies, as the group is already struggling to meet existing production targets.”
