U.S. Weighs Russian Oil Ban as Gas Prices Surge and Ukraine War Grows

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

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

Final fall, it imported about 700,000 barrels per day from Russia, lower than 10 % of its complete oil imports, U.S. officers mentioned. Against this, Europe imported 4.5 million barrels per day from Russia, about one-third of its complete imports. The USA can simply discover a option to make up for any lack of Russian oil, whereas Europe would have a tougher time doing so, analysts mentioned.

However any disruption within the move of oil might additional rattle international 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 % to $123.21 a barrel, however earlier it had climbed as excessive as $139 a barrel. The value of oil has soared about 26 % over the previous week because the battle has intensified.

In an indication of how involved the administration is concerning the uncertainties round international power move, American officers have been discussing the potential of growing 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 shoppers. “I cannot faux this will probably be painless,” he mentioned. “There could possibly be impression on our power costs, so we’re taking energetic 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 concerning the economic system’s power however famous that top fuel costs, together with speedy inflation, are hurting shoppers. These dynamics pose a political downside for the president, whose approval ranking has fallen amid voter considerations about his dealing with of the economic system.