HomeBusinessBiden Officials Weigh Russian Oil Ban as Gas Prices Soar

Biden Officials Weigh Russian Oil Ban as Gas Prices Soar

“Europe has intentionally exempted power provides from Russia from sanctions,” he mentioned in a press release on Monday. “In the intervening time, Europe’s provide of power for warmth technology, mobility, energy provide and trade can’t be secured in some other approach.”

Biden administration officers say the speedy discussions over Russian power are targeted on banning home oil imports fairly than finishing up wider sanctions that may minimize off purchases by different international locations. That would reduce the financial shock to grease markets given the US doesn’t import a lot Russian crude.

Final fall, it imported about 700,000 barrels per day from Russia, lower than 10 p.c of its complete oil imports, U.S. officers mentioned. In contrast, Europe imported 4.5 million barrels per day from Russia, about one-third of its complete imports. The US can simply discover a approach to make up for any lack of Russian oil, whereas Europe would have a more durable time doing so, analysts mentioned.

However any disruption within the move of oil might additional rattle world markets, together with oil costs, which have surged due to the uncertainty over Mr. Putin’s invasion of Ukraine. Brent crude, the worldwide benchmark, ended Monday up about 4.3 p.c to $123.21 a barrel, however earlier it had climbed as excessive as $139 a barrel. The worth of oil has soared about 26 p.c over the previous week because the battle has intensified.

In an indication of how involved the administration is in regards to the uncertainties round world power move, American officers have been discussing the potential of rising provide or distribution with their counterparts in oil-producing nations, together with Saudi Arabia and Venezuela, which is a accomplice of Russia and has been topic to broad U.S. sanctions for years.

On Feb. 15, multiple week earlier than Mr. Putin’s invasion of Ukraine, Mr. Biden mentioned in a speech {that a} battle involving Russia might have an effect on American customers. “I can’t faux this shall be painless,” he mentioned. “There may very well be affect on our power costs, so we’re taking lively steps to alleviate the strain on our personal power markets and offset rising costs.”

At his State of the Union speech final week, Mr. Biden talked in regards to the economic system’s power however famous that prime gasoline costs, together with speedy inflation, are hurting customers. These dynamics pose a political drawback for the president, whose approval score has fallen amid voter considerations about his dealing with of the economic system.



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