Crude oil prices soar as US bans Russian oil exports
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Brent, the main international oil contract, jumped to $131.63 after Biden's decision.
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Crude oil prices soar as the US bans Russian oil exports.
As the US has issued a ban on Russian oil Imports, crude and nickel prices skyrocketed reaching an unprecedented peak as fears over Russian supply escalate.
Although the price per barrel of crude reached $139.13 a barrel on Monday - a peak - Brent, which holds the main international oil contract, jumped 6.8% to $131.63.
The main US contract, West Texas Intermediate, rose 6.7% to $127.44 a barrel.
Biden announced a ban on US imports of Russian oil as part of his wave of draconian sanctions. Britain, along with other European countries, came out with a plan to abandon Russian oil by at least two-thirds by the end of the year and to completely abandon it by the end of the decade.
40% of gas supplied to European nations is from Russia, in addition to one-quarter of Russian oil.
Read more: Russian gas will not be replaced, EU made huge mistake - Former US colonel
Russia has warned earlier that it may retaliate against the sanctions that were imposed on it by cutting off natural gas from the Nord Stream 1 pipeline.
Fawad Razaqzada, a market analyst at ThinkMarkets, described the situation as a "launch of an all-out economic war against Russia" by Washington. "There will be consequences: high gas prices, even more inflation, and retaliation from Russia."
Craig Erlam of OANDA said, "It's another step towards the West turning its back on Russia and leaving it isolated in the world."
Today, Tuesday, House Speaker Nancy Pelosi announced that the House of Representatives will proceed with banning Russian oil imports, despite Biden's executive action according to an aide for the Democrat party. Banning normal trade relations with Russia could also be on the table.
According to the American Fuel and Petrochemical Manufacturers trade association, Russian oil accounts for approximately 3% of US crude oil imports and 1% of total crude oil processed by US refineries.
With gas prices on the hike, Biden's administration has been looking for ways to unlock more oil supplies in the global mark to ameliorate the gas prices.
Biden has initiated or intends to open negotiations with Saudi Arabia, which has been experiencing tensions with its crowned prince, Venezuela which is under draconian US sanctions, and possibly Iran after a nuclear deal is struck in the coming days.
