Business

Russia warns of $300 oil if US and Europe proceed with import ban

The Kremlin warned on Tuesday that oil prices will soar to unprecedented highs if US and European lawmakers proceed with a ban on Russian oil and gas imports in response to Ukraine’s invasion.

Russian Deputy Prime Minister Alexander Novak warned that global oil prices could soar to $300 a barrel in the event of an import freeze. The senior Kremlin official also suggested Russia could shut down the Nord Stream 1 pipeline – a key supplier to Germany – in retaliation.

“It is absolutely clear that a rejection of Russian oil would have catastrophic consequences for the world market,” Novak said on state television. “The price increase would be unpredictable. It would be $300 a barrel if not more.”

West Texas Intermediate Crude, the US price benchmark, traded above $122 a barrel this week after Secretary of State Tony Blinken and other US officials said an import ban was being considered. Prices have already risen to their highest level since 2008.

Russian oil refinery
Russia warns that an import ban would turn the global energy market upside down.
Sergei Karpukhin

A ban on Russian oil and gas imports would be the latest attempt by western nations to ramp up pressure on the Kremlin as violence escalates in Ukraine. The Russian economy relies heavily on revenue from the energy sector, with supplies accounting for more than 40% of the country’s annual revenue.

Novak, a key deputy to Russian President Vladimir Putin, suggested it could take Europe more than a year to replace oil supply volumes if Russia cuts access to its supplies.

“European politicians must honestly warn their citizens and consumers what to expect,” Novak added.

fuel prices
US gas prices rose to record levels during the Ukraine war.
Manuel Balce Ceneta

“If you want to refuse energy supplies from Russia, go ahead. We’re ready for it. We know where to redirect the volumes to.”

Analysts are warning that oil prices could spike to $150 or more in the near term depending on the severity of a potential import ban, The Post reported earlier this week.

The Ukraine conflict has further disrupted a global energy market that is already struggling to keep up with demand.

American drivers are paying record prices at the pump, with the nationwide average price for a gallon of gasoline hitting an all-time high of $4.17 on Tuesday.

With mail wires

https://nypost.com/2022/03/08/russia-warns-of-300-oil-if-us-europe-proceed-with-import-ban/ Russia warns of $300 oil if US and Europe proceed with import ban

DUSTIN JONES

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