The oil price climbed on Sunday, March 6, to the highest level in 13 years as the Biden administration discussed whether it would ban its import from Russia in retaliation for attacks in Ukraine.
On fears of shortages, markets reacted quickly, and Brent crude oil touched nearly $140 per barrel overnight on Sunday.
Prices hit their highest level since 2008, with West Texas Intermediate trading at $119 after briefly topping $130 on Sunday night, and the international benchmark at $123.
The Biden administration is considering a ban on oil imports from Russia without mediating the possibility with European allies, according to some reliable sources, according to Bloomberg.
Regarding this, as indicated by The Hill, U.S. House Speaker Nancy Pelosi said Sunday in a letter to her colleagues, “Our bill would ban the import of Russian oil and energy products into the United States. Repeal normal trade relations with Russia and Belarus, and take the first step to deny Russia access to the World Trade Organization.”
Along with the rising price of oil, the value of gasoline in the United States climbed as well, reaching a national average cost of just over $4 a gallon, almost a penny shy of the all-time high reached in 2008 ($4.11 per gallon).
“Supply disruptions are getting worse as oil traders, vessel owners, governments, ports, and dock workers do not want to touch anything related to Russia,” Lipow Oil Associates President Andy Lipow told Fox Business. He was speaking about the consequences of the escalating Russia-Ukraine conflict.
According to Lipow, the government’s way to counter the rise is to “suspend the 18-cent-per-gallon federal excise tax on gasoline and the 24 cent per gallon federal excise tax on diesel fuel.”
Meanwhile, CFRA Research energy equity analyst Stewart Glickman said, “If U.S. and Western nations get together and actually sanction Russian oil and gas volumes, then I think we’re looking at all-time highs, which would mean going above $150 a barrel.”