The sanctions would cover Russian oil, liquefied natural gas and coal, according to two people who spoke on condition of anonymity. Another person said the decision was made in consultation with European allies, who rely more on Russian energy than the US.
People spoke on condition of anonymity ahead of the announcement because of its sensitivity. Spokesmen for the White House National Security Council declined to comment immediately.
Crude oil futures rose 4% to $124.21 with gains in New York at 8:19 am. The prospect of an oil import ban is helping to propel crude to its highest level since 2008.
The quick move came as Congress was getting ready to act before the White House this week. It put pressure on the Biden administration to move more quickly.
Russia’s gas and oil had so far been spared by most US and European countries-initiated sanctions, due in particular to concerns over the economic impact on Europe, which has an over-reliance on Russian oil, and natural gas in particular. Canada’s government announced last month that it intended to ban all crude oil imports from Russia, but the move was largely symbolic – the country has not imported any since 2019.
The White House said as of Monday that no decision had been made.
“Those discussions are ongoing internally and also with our counterparts and partners in Europe and around the world,” White House Press Secretary Jen Psaki said. Europe imports far more oil from Russia than the US, she said. “So, obviously, we also know very well because we’re having these conversations and as we’re consulting with our partners — we have different abilities and capabilities.”
US Energy Information Administration data show, Russian oil made up about 3% of all crude coming into the US last year. Overall, imports of Russian oil and petroleum products accounted for about 8% of total US imports. According to intelligence firm Kepler, US imports of Russian crude in 2022 fell at the slowest annual pace since 2017.
While so-called self-sanctions have limited some purchases of Russian barrels, an outright embargo from the US would further tighten the market and increase volatility, driving prices up even more.
Nevertheless, the US is a relatively small buyer compared to Europe and the greater risk for price uptick lies in coordinated action between the US and Europe. For now, most of the impact of the US sanctions was priced in by markets over the weekend and in Monday’s trading, pushing the global benchmark to around $140 a barrel. Traders are saying the question now is how long the sanctions last and whether oil from Iran and Venezuela can help fill the gap.
Administration officials in private discussions have said they should push for efforts to accelerate the transition to renewable energy and expand domestic energy production, according to two people familiar with the conversation. But the White House is not planning to take any new initiatives.
Administration officials are discussing with the US oil and gas industry how the sanctions could affect US consumers and global energy supplies, as lawmakers on both sides in Washington seek to punish the Kremlin for the invasion of Ukraine into Russian oil imports. Except in the race to move the bills forward.
Congress leaders were already moving to take the administration’s hand on the issue. Legislation banning Russian crude oil imports quickly gained traction among both Republicans and Democrats on Capitol Hill, with congressional staff honoring the text over the weekend and preparing for a House floor vote as soon as Wednesday.
House Speaker Nancy Pelosi said in a note to lawmakers on Sunday that the House was “exploring stronger legislation” that would ban imports of Russian oil and energy products, among other steps to isolate Russia from the global economy. The pressure for action mounted after President Volodymyr Zelensky asked lawmakers to impose sanctions on imports of Russian oil during a call on Saturday.
Biden administration officials told Pelosi to stay on Monday amid concerns that moving the White House earlier was politically important, two people said. The administrative approach also gives Biden more flexibility to adjust import controls later if tensions ease or prices rise sharply.
In a sign that the US is trying to round up other sources of energy, two senior US officials met with members of Venezuelan President Nicolas Maduro’s government in Caracas over the weekend to discuss global oil supplies and the country’s conflict with Russia. To discuss relations, with talk according to acquaintances.
According to the Energy Information Administration, the US imports about 700,000 barrels per day of Russian crude oil and petroleum products, including fuel oil.
When other petroleum products – such as unfinished fuel oil that can be used to produce gasoline and diesel – are included, Russia accounted for about 8% of 2021 oil imports, although those shipments have increased in recent months. has also decreased.
According to Eurostat data, it will be far more difficult for Europe to roll back the ban, which imports about 4 million barrels of Russian crude and refined products per day.
According to the European Commission, Russia is by far the largest exporter of crude oil to the EU, accounting for 27% of imports in 2019.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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