Oil prices jumped to highs with Biden administration set to ban Russian oil
WTI crude oil rose about 4.6% to trade at $124.90 per barrel. Brent crude oil, the international benchmark, jumped 5% to $129.42 per barrel.
FollowOil prices jumped to their highs of the session with the Biden administration is poised to impose a ban on US imports of Russian energy as soon as Tuesday without the participation of its European allies, according to people familiar with the matter.
WTI crude oil rose about 4.6% to trade at $124.90 per barrel. Brent crude oil, the international benchmark, jumped 5% to $129.42 per barrel.
The US will announce a ban of Russian oil imports as soon as today, a person familiar with the matter told CNBC. The ban would be without European participation and include liquefied natural gas and coal, according to a Bloomberg News report.
The people spoke on condition of anonymity ahead of the announcement owing to its sensitivity. Spokespeople for the White House National Security Council declined to immediately comment.
Crude oil futures extended gains on the news, rising 4% to $124.21 at 8:19 a.m. in New York. The prospect of an oil import ban is helping drive crude to its highest levels since 2008.
The accelerated move comes as Congress had been getting ready to take action this week ahead of the White House. That put pressure on the Biden administration to move more quickly.
In 2021, the US imported about 672,000 barrels per day of oil and refined products from Russia, or about 8% of total imports, according to Andrew Lipow, president of Lipow Oil Associates, based on data from the Energy Information Administration.
The U.S. equivalent, West Texas Intermediate, added 5.3% to $125.65. Oil prices for both measures were already up prior to The Wall Street Journal report but rose further after. The timing of the decision remains fluid, but could happen as soon as Tuesday.
Russia’s gas and oil had so far been mostly spared from sanctions introduced by the US and European countries, due to concern over the economic impact, particularly on Europe, which has greater dependence on Russian oil and, in particular, natural gas. Canada’s government announced last month that it intended to ban all crude oil imports from Russia, but the move was largely symbolic -- the country hasn’t imported any since 2019.
