The president of the United States, Joe Biden, announced on Tuesday the immediate ban on importing Russian energy at a press conference, and revealed that the US government is working with the EU so that the Twenty-seven can take the same step. “We want our European allies to become independent of Russian energy,” Biden said. The US ban will include the Russian oil, liquefied natural gas (LNG) and coal.
Finally, the Biden administration took the step, given the US’s ability to replace the 200,000 barrels it imports daily from Russia. “We can afford it because we have high energy independence,” Biden explained.
The president’s objective now is to help the EU to be able to follow the same step. Shortly before, the European Commission presented its plan to reduce Russian gas imports by 66% this year, and to be able to eliminate them completely by 2030. Among the measures advanced by the US media, the White House would be studying starting the american industry for manufacture efficient gas pumps and other devices for Europe that minimize gas consumption and enable the European economy to be electrified.
Brent’s barrel scale above 132 dollars after knowing the intentions of the USA and the of the WTI Texas rises to 129 dollars. The reference barrel in the US seems to be discounting the effect of the sanctions.
Russia’s oil and gas have so far escaped sanctions imposed by the US, the European Union (EU) and more countries out of concern about the economic impact of punishment. According to data from the US Energy Information Administration, Russian oil accounted for about 3% of all crude oil shipments that arrived in the country in 2021.
In Europe, Russia’s energy dependence is much greater: Russia, which supplies 40% of Europe’s gas. In countries like the Czech Republic, Moldova, North Macedonia, Latvia or Bosnia and Herzegovina, the dependency is total.
The Government of the United Kingdom does plan to eliminate all imports of Russian oil, as announced shortly before London. The measure is arranged with the US and the ban will be implemented gradually in the coming months. The ban will not apply to Russian gasassures this source.
An oil at 150 dollars?
“The US is about to announce a ban on Russian oil imports, in a new escalation of its standoff with Russia. This could push oil prices towards $150 a barrel, a new all-time high, as markets fear a major supply disruption,” says Ben Laidler, eToro strategist, in a quick comment.
“These US restrictions will probably be unilateral, and Europe will stay out of the restrictions for now, given its greater reliance on Russian energy. Russia produces 11% of the world’s oil, but supplies 30% of the world’s oil needs. Europe and 40% of its natural gas. In contrast, Russian oil imports represent less than 1% of US oil consumption,” adds the expert.
“The rise in oil prices will worsen the global economic outlook in the short term, as it will slow growth and increase already high inflation. The only bright spot is that global growth is currently strong. Meanwhile, ‘the solution to high oil prices is high oil prices,’ as consumers are increasingly driven to reduce demand by rising costs,” Laidler concludes.
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