US prepares for Russia embargo, crude oil prices skyrocket to 13-year high

LONDON – Crude oil prices The world has soared to its highest level since 2008 after the United States said it was discussing a potential embargo on Russian supplies with its allies. The price of Brent crude oil, which is the global benchmark for oil, was observed to have shot up to above USD139 per barrel, before easing back down.

The energy sector market has been rocked in recent days on supply concerns fueled by Russian invasion of Ukraine . Consumers are already feeling the impact as BBM (fuel oil) is getting more and more expensive and household bills soar.

Also Read: EU Considers Energy Sanctions Against Russia, Dare?

Stock markets in Asia fell on Monday, with Japan’s Nikkei and Hong Kong’s Hang Seng down more than 3%. On Sunday, US Secretary of State Antony Blinken said the Biden administration and its allies were discussing an embargo on Russian oil supplies.

Meanwhile, US House Speaker Nancy Pelosi said she was discussing legislation to ban imports of Russian oil and that congress this week intends to provide $10 billion worth of aid to Ukraine in response to a Russian military invasion.

“The House of Representatives is currently exploring legislation that will further isolate Russia from the global economy,” Pelosi said.

The statement comes as pressure is mounting on the White House and other Western countries to take tougher action against Moscow over its invasion of Ukraine.

The Russian oil embargo would be a major escalation in response to an invasion of Ukraine and potentially have a major impact on the global economy.

“While the US may simply push through a ban on Russian oil imports, Europe doesn’t seem capable of doing the same. More worryingly, (Russian President Vladimir) Putin could easily cut off gas supplies to Europe, cutting off the energy lifeline to the continent,” he said. Vandana Hari from energy consultancy Vanda Insights.

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