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%. JPMorgan analysts said the war in the past two weeks has caused the highest inflation in commodity prices in more than 60 years.
In this context, European stock markets are trading higher as investors take a break after three days of sales, while crude oil prices generate some relief.
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.
Source: Ambito
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