When the European Union voted to cut off Russian crude on May 31st, it was essentially a green light to buy oil stocks and, thus, a number of oil-focused ETFs. But before we dig into a few options that you should look at, let's talk about why this move is good for the oil industry and not necessarily your wallet.
The European Union voted to ban nearly all Russian oil from entering Europe. The details of the agreement essentially cut Russian oil imports into Europe by 90% over the next six months. The 27-country bloc relies on Russian oil for roughly 25% of what they consume. The ban directly applies to Russian oil that is delivered by sea, which means landlocked countries and Hungary, which receive the oil via pipelines, will still be permitted to access the commodity.
The goal of these sanctions is to cripple the Russian economy and force them to stop the war in Ukraine; however, Russia has already stated that they have other buyers of their oil in Asia, particularly China and India. Many believe Russia will be able to sell its oil to other countries but at a discount. Which will hurt Russia but may not have as much of an effect as the EU and other allied countries would like to see. Continue reading "EU Cuts Off Russian Oil Making These ETFs Top Buys"