Crude oil is pushing near $127 a barrel after President Joe Biden said the US would ban the import of Russian crude. This could further escalate efforts to hobble the nation’s economy that will further strain global energy markets.
Futures in New York, Singapore and elsewhere have soared more than 35% since the invasion of Ukraine almost two weeks ago, and settled at the highest since 2008 on Tuesday. The UK said it would also phase out Russian crude imports by the end of the year, and Shell Plc and BP Plc are halting new purchases, but European nations have been reluctant to commit to similar action.
The invasion has pushed commodity prices surging with no viable cap seen from metals to grains and constantly pushing the global economy’s trajectory towards the negative.
Banks and traders are predicting even higher crude prices and already tight energy markets are being stretched.
Russia is a key member of the OPEC+ alliance and a major producer of crude and petroleum products such as diesel. Mounting sanctions on the nation are prompting supply fears, with fuel prices following oil higher. American gasoline prices rallied to a record Monday, increasing the pain for consumers.
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