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Commodities Weekly: New sanctions on Russia fail to rock the oil market

New sanctions on Russian oil from the US and Europe this week were met by a muted market reaction. This is a reflection of investors doubting President Trump will follow through with his threats, and a belief that new European sanctions will be no more effective than previous attempts. In any case, we expect weak demand fundamentals to reassert themselves this year and to push Brent crude prices down to $60 pb at the end of the year.

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