Latest News by Industry
• President Biden will sign an executive order
• US government’s decision was a unilateral move, without support from EU
President Joe Biden on Tuesday announced that the U.S. will ban oil imports from Russia, along with natural gas and coal, in response to the Russian invasion of Ukraine.
“Today, I am announcing the United States is targeting the main artery of Russia’s economy. We’re banning all imports of Russian oil and gas and energy,” Biden said at the White House.
“That means Russian oil will no longer be acceptable at U.S. ports, and the American people will deal another powerful blow to Putin’s war machine.”
In a press release, the White House said President Biden will sign the executive order on Tuesday to “further deprive President Putin of the economic resources he uses to continue his needless war of choice.”
Soaring oil prices
At the time of reporting the U.S. oil benchmark, the West Texas Intermediate (WTI) crude March contract soared nearly 7% to $128 a barrel.
Brent crude, the global standard, jumped over 7% to nearly $132 a barrel.
On Monday, Brent crude hit its highest level in 14 years and reached around $140.
Following Russia’s invasion of Ukraine, crude prices exceeded $100 a barrel, raising worries of supply interruptions from Russia, which ranks third in global oil output, in an already tight market.
Unilateral decision
The U.S. government’s announcement was a unilateral move, a major escalation in the international response, without support from European Union.
European nations are yet to decide whether to ban Russian energy imports, as the bloc has significantly more exposure to Russian energy than the U.S.
Given the extreme political pressure domestically, the Biden administration decided to move without the coalition.
“This is a step we’re taking to inflict further pain on Putin,” Biden said.
Picture Credit: CNBC