What you should know about a U.S. ban on Russian oil imports — from the impact on gas prices to how it will affect Russia's war in Ukraine.
from the impact on gas prices to how it will affect Russia's war in Ukraine.As Russia has intensified its war on Ukraine, killing civilians and triggering a mass refugee crisis, President Joe Biden is expected to announce a ban on importing Russian fuel, according to a person familiar with the matter. Critics of Russia have said this would be the best — perhaps only — way to force Moscow to pull back.
Amid rising gasoline prices in the U.S. — the average price has topped $4 a gallon for the first time since 2008 — the Biden administration faces growing pressure to impose further sanctions on Russia, including a ban on oil imports. No decision has yet been made. Pelosi, who has expressed support for a U.S. ban on Russian oil, nevertheless also cited Biden's action in leading U.S. allies to release 60 million barrels of oil from strategic reserves, including 30 million barrels from U.S. reserves, to try to stabilize global markets.If the U.S. acts alone in banning imports of Russian oil and refined products, the impact on Moscow would likely be minimal.
A team of Biden administration officials were in Venezuela over the weekend to discuss energy and other issues, White House press secretary Jen Psaki said. Officials discussed"a range of issues, including certainly energy security,'' Psaki said.A month ago, oil was selling for about $90 a barrel. Now, prices are surging past $120 a barrel as buyers shun Russian crude, with many refiners fearing that sanctions could be imposed in the future.
"Our industry has taken significant and meaningful steps to unwind relationships" with Russia and voluntarily limit Russian imports, said Frank Macchiarola, senior vice president of the American Petroleum Institute, the oil and gas industry's largest lobbying group. Oil is easier to replace than natural gas. Other countries could increase production of oil and ship it to Europe. But much oil would have to be replaced, and this would drive up prices even more because the oil would likely have to travel farther.