US President Joe Biden is likely to ban Russian oil imports as soon as Tuesday after Moscow's invasion of Ukraine, according to Associated Press.
The move follows pleas by Ukrainian President Volodmyr Zelenskyy to US and Western officials to cut off the imports
US President Joe Biden is likely to ban Russian oil imports as soon as Tuesday after Moscow's invasion of Ukraine, according to Associated Press.
The move follows pleas by Ukrainian President Volodmyr Zelenskyy to US and Western officials to cut off the imports.
The White House said Biden would speak on Tuesday morning to announce “actions to continue to hold Russia accountable for its unprovoked and unjustified war on Ukraine.”
The possibility of the ban on Russian oil triggered a surge in Brent crude to almost $140 a barrel, its highest level since 2008.
The prices may go up after US imposes an import ban on Russian oil.
Russia is the world's top exporter of crude and oil products combined, at around 7 million barrels per day (bpd ) or 7% of global supply.
JP Morgan predicts oil could hit a record $185 a barrel by the end of 2022 if disruption to Russian exports lasts that long.
With natural gas prices hitting all-time highs, soaring energy costs are expected to push inflation above 7%.
In addition to being a major supplier of oil and gas, Russia is also the world's largest grains and fertilisers exporter and a top producer of palladium, nickel, coal and steel.
The bid to exclude its economy from the trading system will hit a wide range of industries and add to global food security fears.
Russia accounts for less than 10 percent of US imports of oil and petroleum products which makes it easier for Biden to order a ban.
However, it will have a major impact on other countries, especially in Europe as natural gas from Russia accounts for one-third of Europe's consumption of fossil fuel.