Bullets:

• Western sanctions against oil producers in Russia and Europe have simply re-routed global trade routes.
• Energy shipments from Russia to the European Union have instead been snapped up by India, Turkiye, and Africa.
• Iran, though under heavy sanctions, produces more oil today that at any time in over 40 years, with $78 billion in export sales, mostly to China.
• Russia and Iran are some of the world’s lowest-cost oil producers in the world, and can book profits even as prices fall.
• In the United States, drilling companies are shutting down oil rigs and shelving plans for new exploration. Energy companies cannot profitably drill new wells in North America, unless oil prices maintain long-term pricing far above $60 per barrel.
• Demand destruction is also being felt across the world, as Chinese production of new energy vehicles is a hit to future gasoline sales.