Oil Prices Hit Highest Levels Since 2008 on Supply Fears

Oil prices have surged to a 14-year high overnight as allies continue to ponder energy sanctions against Russia.

The United States and European allies are considering banning imports of Russia’s oil, the U.S. Secretary of State Antony Blinken said yesterday.

Even though Russia is the biggest crude oil and natural gas exporter in Europe, the allies are closer to deciding to ban Russian products, according to Reuters.

In the meantime, U.S. House of Representatives Speaker Nancy Pelosi wrote in a letter that the chamber is discussing potential legislation that would ban the import of Russian oil. Furthermore, Congress is expected to pass the $10 billion in aid for Ukraine, following Russia’s invasion of its neighboring country.

According to the reports, the White House is also holding talks with the Senate Finance Committee and House of Representatives Ways and Means Committee about the ban.

Apart from talking about the potential ban, Blinken also emphasized the importance of maintaining steady oil supplies.

"We are now in very active discussions with our European partners about banning the import of Russian oil to our countries, while of course, at the same time, maintaining a steady global supply of oil," Blinken told NBC.

Blinken said he discussed oil imports with U.S. President Joe Biden and is now in Europe to work with European allies on the response to Russia’s invasion.

Elsewhere, Japan is also involved in the discussions with the U.S. and Europe about a potential ban of Russian oil imports, according to the report by Kyodo News.

Oil prices have surged over the past week after the U.S. and its allies imposed sanctions on Russia.

"I'm not going to rule out taking action one way or another, irrespective of what they do, but everything we've done, the approach starts with coordinating with allies and partners," Blinken said when asked whether the U.S. has excluded the possibility of banning Russian oil imports unilaterally.

Meanwhile, talks about the return of Iranian crude to global markets were delayed after Russia said it would not back the deal unless the U.S. provides a guarantee that the sanctions Moscow faces over Ukraine will not affect its trade with Iran.

In the response, Blinken said the Ukraine-related sanctions on Russia are not linked with the deal with Teheran.

By Senad Karaahmetovic | [email protected]

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