Crude OIl: futures soared 7% to above $132 per barrel on Tuesday, approaching a 2008-high of $139 hit in the previous session, after US President Biden announced a ban on the importation of Russian oil, gas and energy into the US as part of economic penalties for Russia’s invasion of Ukraine.
Also the UK is to phase out the import of Russian oil and oil products by the end of 2022. The ban would cut America’s annual supply of oil and refined products by 8%, with crude falling 3%. In Britain, the move is seen dragging down overall oil supply by 8% and diesel by 18%.
Russia is the world’s third-largest oil producer, accounting for more than 10% of global supply, according to US EIA. Its exports account for 7% of the world market, of which around 60% go to Europe, making the continent more reluctant in joining US and UK. Exxon Mobil Corp., BP PLC and Shell PLC all announced plans to exit Russian operations last week.