In Sunday evening trade, U.S. Crude oil rose more than 7% as the market continued to react to supply problems caused by Russia’s escalating invasion of Ukraine, as well as the threat of a ban on Russian oil and natural gas. The U.S. oil benchmark, West Texas Intermediate Crude futures, rose 7.34 percent to $124.17 a barrel. Before recovering, the price soared to $130.50 on Sunday evening, its highest since July 2008. Brent Crude, the worldwide standard, rose 8.54 percent to $128.20.
Brent reached a high of $139.13 overnight, its highest level since July 2008. The risk of a comprehensive embargo on Russian oil and products has pushed up the price of oil. Already high gasoline prices will continue to rise in a startling manner. In certain states, prices will shortly approach $5. Secretary of State Antony Blinken stated on CNN’s “State of the Union” on Sunday that the US and its allies are considering blocking Russian oil and natural gas imports.
We are now in discussions with our European friends and allies on the possibility of blocking Russian oil imports while ensuring that there is still an adequate supply of oil on world markets. Meanwhile, House Speaker Nancy Pelosi announced in a letter to Democratic colleagues on Sunday evening that the US House of Representatives is considering tough legislation to prohibit the import of Russian oil, further isolating Russia from the global economy.
Our plan would prohibit the import of Russian oil and energy products into the US, end normal trade relations with Russia and Belarus, and take the first step in denying Russia entry to the WTO. We’d also give the president the authority to levy duties on Russian imports. While the country’s energy commerce has been allowed to continue despite Western sanctions, most importers are already avoiding Russian items.