Oil Prices Jump on Reports U.S. Will Ban Russian Oil and Natural Gas Imports

President Joe Biden speaks about Ukraine in the East Room of the White House, Tuesday, Feb
(AP Photo/Alex Brandon)(Alexei Nikolsky/Sputnik/Kremlin Pool Photo via AP)
John Carney

Oil prices jumped higher on Tuesday morning after news organizations reported that the Biden administration is poised to ban U.S. imports of Russian energy.

The ban will cover Russian oil, liquefied natural gas, and coal, according to a Bloomberg news report citing two anonymous sources. NBC News also reported that “two sources familiar with the matter” said the ban is expected to come Tuesday.

Bloomberg’s report said the decision was made “in consultation with European allies.” Europe is much more reliant on Russian energy, especially Russian natural gas, than the U.S.

Brent crude, the global benchmark, jumped to $129.58. West Texas Intermediate moved up to $124.95.

The price of Russian oil has been trading at a steep discount to Brent because many market participants were effectively boycotting Russia following the attack on Ukraine. U.S. refiners were reportedly not bidding on any Russian oil. That makes it easier to ban Russian oil since it was largely being excluded from the U.S. market already.

UPDATE–11:43 AM EST: President Joe Biden on Tuesday announced his administration has banned energy imports from Russia and warned gas prices could rise even more across the United States. 

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