President Joe Biden issued a ban on Russian fossil imports, including oil, in retaliation to the country’s invasion of Ukraine, sending oil prices to new highs for the session. WTI Crude Oil increased by as much as 7% to trade at $128 per barrel. It finished the day at $123.70, up 3.6 percent. Brent Crude Oil, the worldwide benchmark, rose 7.7% to $132.75 before reversing course. The contract closed 4.3 percent higher at $123.21 at the end of the session.
In a press conference, Biden said, “We made this decision in close consultation with our allies and partners throughout the world, particularly in Europe. We are developing a long-term strategy with Europe and our partners to lessen their reliance on Russia.” According to Andrew Lipow, head of Lipow Oil Associates, based on statistics from the Energy Information Administration, the United States imported around 672,000 barrels per day of oil and processed products from Russia in 2021, accounting for nearly 8% of total imports.
The Russian energy complex has already been sanctioned by the market, with purchasers boycotting the country’s oil. As energy prices rise, Americans are paying the highest gas prices on record, adding to widespread inflation that is affecting all sectors of the economy. According to AAA, the national average price a gallon of normal gas jumped to $4.173 on Tuesday.