US Senators look to be pursuing secondary sanctions on Russian oil

The WSJ reports comments from Senator Lindsay Graham:

• Says he has 60 co-sponsors of bill to put secondary sanctions on Russian oil
• Predicts that number will rise to at least 67
• “It’s clear to me—and I think it’s becoming clear to President Trump—that the Russians are playing games,”
• The bill would put 500% sanctions on buyers of Russian oil, gas, uranium or other products
• Thune has made no promises to bring the bill to a vote

At 67 it would be veto-proof, meaning that Trump couldn’t stop it.

That said, this looks like posturing and leverage in an attempt to get Russia to negotiate peace. If this were to happen, it would materially change the balance of the global oil market and spike prices.

This article was written by Adam Button at www.forexlive.com.