Oil Extends Gains With U.S. and U.K. Banning Russian Imports
- Brent crude futures settle near $128 a barrel in London
- U.S. and U.K. are only two nations to formally ban Russian oil
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Oil rallied higher after President Joe Biden announced the U.S. would ban imports of Russian energy, while the U.K. said it would phase out Russian products by the end of this year.
West Texas Intermediate gained 3.6% to settle over $123 a barrel while Brent added 3.9%. The U.S. announced a ban of Russian fossil fuels on Tuesday. The U.K. said it phase out all imports of Russian oil. The country will continue to allow natural gas imports from Russia. So far, they are the only two countries to impose an outright ban. Europe is likely to face the brunt of the current commodity crisis, said Goldman Sachs analysts Jeff Currie in a report, with the Russian crisis threatening a 1970-s style energy shock.