US gas prices: Huge support for Biden Russia ban despite ‘Putin spike’ in energy costs

“Putin seems determined to continue on his murderous path no matter the cost,” says Mr Biden.

“This much is already clear: Ukraine will never be a victory for Putin. Putin may be able to take a city, but he’ll never be able to hold the country and if we do not respond to Putin’s assault on global peace and stability today the cost of freedom and to the American people will be even greater tomorrow.”

Biden to oil and gas industry: “We understand that Putin’s war against the people of Ukraine is causing prices to rise. But that is no excuse for excess price increases, or padding profits, or any kind of effort to exploit this situation.”

Senate Majority Leader Chuck Schumer has tweeted out his reaction to the White House announcement of a ban on Russian energy imports.

“America is saying ‘nyet’ to Russian fossil fuels. By banning the import of Russian oil, coal, and gas into the US, @POTUS continues to hit Putin where it hurts.”

“This action sends a clear signal that Americans will not fund Putin’s unprovoked and illegal invasion of Ukraine.”

Martin Durbin, president of the US Chamber of Commerce’s Global Energy Institute, has released a statement supporting the Biden administration’s decision to ban Russian energy imports.

Mark Zandi, chief economist of Moody’s Analytics ECON tweets: “It’s a big surprise to me that the US and others are self-sanctioning Russian oil. Over 3 million barrels a day of Russian oil needs to be replaced, fast. The Saudis and UAE have excess capacity, and there is Iranian oil. US frackers will kick in. But all this will take time.

He continues: “For oil demand and supply to equate, oil prices as high as $150 per barrel seem increasingly likely. At least for a few weeks until things begin to sort out. This translates into about $5 for a gallon of regular unleaded, and much higher than that in places like CA and NY.”

Mr Zandi adds: “This darkens the inflation outlook, as inflation expectations threaten to become unhinged. They are already high. See 5-year breakevens. The Fed would have a Hobson’s choice, but would tighten more aggressively. Recession risks are rising. One-in-three over the next 12-18 months.”

House Speaker Nancy Pelosi has written to her colleagues in the lower chamber of Congress, saying they will vote today on a bill to further isolate Russia from the global economy.

Our bill contains three major provisions that will further isolate Russia from the global economy and leave it weaker in every way:

The bill will ban the import of Russian oil and energy products into the United States. This will cut off a major source of revenue for Putin. Separately, as we work to diminish the Russian economy, we remain laser-focused on bringing down energy costs for American families and our partners.

The bill will take steps to review Russia’s access to the World Trade Organization and explore how we can further diminish Russia in the global economy.

The bill will reauthorise and strengthen the Global Magnitsky Human Rights Accountability Act so that the United States can impose further sanctions on Russia. In 2012, the Congress took bipartisan action with the Magnitsky Act to impose sanctions on human rights abusers in Russia, while also normalising trade relations. This standard was expanded in 2016 to apply globally: broadening the human rights abuses that can be punished with sanctions and bolstering coordination with our partners.

Our new bill extends Global Magnitsky so that the United States can continue to punish Russia for its heinous attacks on Ukrainian civilians and its violation of Ukraine’s sovereignty and territorial integrity.

Today’s Executive Order bans:

• The importation into the United States of Russian crude oil and certain petroleum products, liquefied natural gas, and coal. Last year, the US imported nearly 700,000 barrels per day of crude oil and refined petroleum products from Russia and this step will deprive Russia of billions of dollars in revenues from US drivers and consumers annually.
• New US investment in Russia’s energy sector, which will ensure that American companies and American investors are not underwriting Vladimir Putin’s efforts to expand energy production inside Russia.
• Americans will also be prohibited from financing or enabling foreign companies that are making investments to produce energy in Russia.

President Joe Biden headed out from the White House after his announcement banning Russian energy imports to head to the heart of the US’s energy industry — Texas.

However, the purpose of the visit is healthcare for veterans rather than oil.

Oil and refined products analyst Patrick De Haan calls the numbers “absolutely astounding”, noting that the national average is now $4.20/gallon, with prices up 56.1c/gallon from a week ago, and up 73.3c/gallon from a month ago.

Kwasi Kwarteng, MP for Spelthorne and the UK’s Business & Energy Secretary has announced that the UK will phase out the import of Russian oil and gas by the end of 2022.

“This transition will give the market, businesses and supply chains more than enough time to replace Russian imports – which make up eight per cent of UK demand,” he said.

“Businesses should use this year to ensure a smooth transition so that consumers will not be affected. The government will also work with companies through a new Taskforce on Oil to support them to make use of this period in finding alternative supplies.”

He continues: “The UK is a significant producer of oil and oil products, plus we hold significant reserves. Beyond Russia, the vast majority of our imports come from reliable partners such as the US, Netherlands and the Gulf. We’ll work with them this year to secure further supplies.”

Mr Kwarteng concludes: “The market has already begun to ostracise Russian oil, with nearly 70 per cent of it currently unable to find a buyer. Finally, while the UK is not dependent on Russian natural gas — four per cent of our supply — I am exploring options to end this altogether.”