Similarly, the oil Brent of the North Sea, which does so in the London electronic market (ICE), fell 2.07% and the barrel was agreed at US $ 125.33 but in the contracts for May, according to what was reported by the Bloomberg agency .
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) reported that its crude oil basket closed yesterday at US$ 127.93 a barrel, compared to US$ 126.51 last Monday, which represented an increase of 1.12%.
US bans import of Russian oil
President Joe Biden decreed an embargo on the US import of Russian oil and gas on Tuesday, to increase the sanctions imposed on Russia and “deal another heavy blow” to President Vladimir Putin.
Almost simultaneously, the United Kingdom announced that it will suspend energy imports from Russia before the end of 2022. And in Brussels, the European Union (EU) announced that it intends to reduce its gas imports from Russia by two thirds this year. ahead of a bloc summit to discuss how to end dependence on Russian hydrocarbons.
This decision was made “in close coordination” with US allies, Biden said. “We will not help subsidize Putin’s war.”
For the moment, Europe refuses to impose an embargo on these Russian imports, which cover 40% of its needs for natural gas and 30% for oil.
The United States is a net exporter of energy, that is, it produces more oil and gas than it consumes, Biden recalled. “We can make this decision, while others cannot.”
“But we are working closely with Europe and our partners to put in place a long-term strategy to reduce their dependence on Russian energy,” he said.
He is well aware that this strategy could benefit the United States, which exports liquefied natural gas to Europe, a possible alternative to Russian gas.
“We remain united in our intention to maintain increasing pressure on Putin and his war machine,” added the US head of state.
Oil prices continued their unstoppable rise after the announcement.
A barrel of North Sea Brent for May delivery settled up 3.87% in London at $127.98. And in New York, the barrel of West Texas Intermediate (WTI) for April gained 3.60% to 123.70 dollars.
According to Japanese media, Japan is also considering, among other options, the application of an embargo on Russian energy imports.
Oil companies announce one after another that they are withdrawing from Russia. Shell did it on Tuesday, following in the footsteps of BP, ExxonMobil or the Italian Eni.
Russian oil represents only 8% of US imports and 4% of consumption of crude oil products in the United States, which does not import Russian gas. Even before the invasion of Ukraine, US imports had already been greatly reduced.
At first, Biden seemed hesitant about an embargo because it could accelerate already runaway inflation, but pressure from Congress was strong.
US congressmen had begun to prepare a bill to ban the import of Russian oil and gas that had the approval of the Democratic majority and the Republican opposition, an unusual harmony in a highly divided political country.
Joe Biden wanted to get ahead of the legislators, perhaps to take advantage of the increase in popularity that the polls give him for the way in which he manages the war in Ukraine.
“It’s the right call,” Texas Republican Sen. Ted Cruz said on CNBC. “The next step is to work with Europe to do the same, to sideline Russian oil and gas.”
“We are going to see an increase in fuel prices here in the United States,” Democratic Senator Chris Coons warned on CNN, and “in Europe there will be spectacular increases. It is the price of defending freedom and supporting the Ukrainian people” .
The price of gasoline hit a new all-time high on Tuesday in the United States: a gallon (3.78 liters) is worth an average of 4.17 dollars, according to the AAA Automobile Association. In one month, the average price rose 20%.
Specifically, the United States prohibits imports of Russian crude oil, but also of certain petroleum derivatives, liquefied natural gas and coal.
The White House explained that the ban will apply to any new purchase, but a period of 45 days is given to liquidate closed contracts.
Source: Ambito
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