“Many of our European allies and partners may not be in a position to join us,” he said, but added that allies “remain united in our purpose” to inflict pain on Russia’s war effort. By comparison, it was about $78 per barrel at the end of 2021. The Brent crude price jumped by about 6 percent to roughly $130 per barrel by the middle of the day Tuesday. For instance, it would likely make a big difference globally and in markets if Europeans also ban Russian oil and gas imports, and it is not yet clear whether or to what extent that will happen.Ī ban across many countries “would severely reduce and disrupt energy supply on a global scale and already high commodity prices would rise,” Caroline Bain, an economist at Capital Economics, wrote in a research note ahead of the announcement, estimating that the price of the global oil benchmark, Brent crude, would settle in at about $160 per barrel in that case. While the oil and gas ban is almost sure to push inflation higher in the United States, economists have said that the scale of the economic consequences would depend in large part on how it was structured. But the conflict in Ukraine is clearly pushing commodity gas prices higher - so much so that the national average gas price could rise to nearly $4.50 this month, he said, “assuming we don’t move any more.” “Things have been so volatile,” said Omair Sharif, founder of Inflation Insights, noting that it was difficult to tell how much of the rise in oil prices in recent days traces back to this specific ban. And it blocks Americans from financing or enabling foreign companies that are making investments to produce energy in Russia.Įurope imports far more of its supply from Russia than the United States, but energy markets are global, and the mere threat of a ban has pushed commodity prices higher in recent days. The ban applies to imports of Russian oil, liquefied natural gas and coal.
While he acknowledged that the move would likely push gas prices up, he blamed Russian aggression for that reality. He said the plan would target the “main artery” of the Russian economy. Biden said, speaking at a White House briefing. “We’re banning all imports of Russian oil and gas and energy,” Mr. economy, pushing prices at the gas pump higher when inflation is already rapid, although how long-lasting that impact might be remains uncertain. The ban on Russian oil imports announced by President Biden on Tuesday could have meaningful consequences for the U.S.
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