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Possible halt to Russian imports: oil prices rise to record high

2022-03-07T11:57:24.897Z


Possible halt to Russian imports: oil prices rise to record high Created: 03/07/2022, 12:48 p.m By: Monja Stolz Because of the Ukraine war, the US is discussing a ban on imports of oil from Russia, which is causing prices to skyrocket. Singapore – Even before Vladimir Putin* gave his troops the order to invade Ukraine*, oil prices rose enormously worldwide. The political tensions on the Russia


Possible halt to Russian imports: oil prices rise to record high

Created: 03/07/2022, 12:48 p.m

By: Monja Stolz

Because of the Ukraine war, the US is discussing a ban on imports of oil from Russia, which is causing prices to skyrocket.

Singapore – Even before Vladimir Putin* gave his troops the order to invade Ukraine*, oil prices rose enormously worldwide.

The political tensions on the Russian-Ukrainian border caused a strong risk premium on the oil market.

On 02/24

Finally, Putin launched his war of aggression against Ukraine, sending oil prices to record highs.

A possible import stop for oil from Russia*, one of the largest oil producers in the world, drove oil prices to their highest level since 2008 at the start of the week, according to the German Press Agency (dpa).

In early trading, the price for a barrel (159 liters) of North Sea Brent rose by up to almost 18 percent to $139.13 and was thus close to the record level of almost $150 from summer 2008. The Brent price recently rose almost 11 percent or $12.57 to $130.67.

This accelerated the rise in oil prices over the past few days.

Ukraine war: Possible import ban from Russia causes oil prices to rise

Since Russia's invasion of Ukraine, the price of Brent has risen by around a third after having risen in the weeks before.

The price has risen by around two-thirds since the end of 2021.

The development of the price for a barrel of the US West Texas Intermediate (WTI) variety looks similar.

On Monday, the WTI price rose by a good nine percent or around $11 to over $126 after temporarily exceeding the $130 mark for the first time in 14 years.

Considerations about halting Russian oil imports drives prices to record high in 14 years.

© Henning Kaiser/dpa

One reason for the sharp rise in prices is the sanctions against Russia.

After the United States was criticized for continued oil imports from Russia*, US Secretary of State Antony Blinken has now brought new punitive measures into play because of the further escalation of the Ukraine conflict*: Washington is advising European allies on a possible import stop for oil from Russia.

"We are now speaking with our European partners and allies to examine, in a coordinated manner, the prospect of a ban on Russian oil imports," Blinken said on Sunday.

China will probably resume oil imports from Russia - despite the Ukraine war

Russia exports its oil to China, Japan, Vietnam, the Netherlands, Britain, Germany and the United States, among others, according to a report by British oil company bp.

Consulting firm Energy Aspects estimates that about 70 percent of Russia's crude oil trade has been paralyzed since the invasion began.

While the European Union* and the US look to further reduce oil imports from Russia, the company suspects China and India will resume purchases once freight, insurance and payment issues are settled.

Since the financial transactions in particular are making trade more difficult due to the sanctions against Russia, this was stopped for a short time.

In Germany, fuel prices have risen more drastically than, for example, in neighboring Austria.

This is probably also due to the fact that, according to the Federal Ministry for Economic Affairs and Climate Protection, Russia, with almost 40 percent, is one of Germany's most important oil-supplying countries, alongside Saudi Arabia.

The corresponding ministry in Austria states that Russia is only the third most important supplier after Kazakhstan and Libya.

(mos/dpa)

*fr.de is an offer from IPPEN.MEDIA.

Source: merkur

All news articles on 2022-03-07

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