Oil prices jump as Biden announces full ban on Russian oil

United State President Joe Biden has announced full ban on Russian oil, gas, energy imports in response to Putin’s invasion of Ukraine forcing a barrel of Brent crude up to over $132.

Biden said the decision to ban Russian oil imports has been taken in “close consultation” with allies and partners around the world, particularly in Europe.

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Comments from the chief executive of Saudi Aramco that the Ukraine conflict is making the energy crisis even worse has done little to calm nerves.

CEO Amin H. Nasser stressed that there is no capacity in the market right now that could replace seven million barrels of oil which Russia currently supplies to the global market per day.

Similarly, the European Commission published plans to cut EU dependency on Russian gas by two-thirds this year and end its reliance on Russian supplies of the fuel “well before 2030”.

The European Union executive said it would switch to alternative supplies and expand clean energy faster under the plans, which national governments will be largely responsible for implementing.

Rising oil prices may put more pressure on the Naira – Expert

Senior Research Analyst at FXTM Lukman Otunuga has argued that the latest move to squeeze supply in an already tight market could propel oil prices to the 2008 high of $147.50 and beyond.

“The full benefits of oil gaining over 60% year-to-date may not be felt by Africa’s largest economy given its poor infrastructure and sub-optimal oil production. On top of this, Nigeria exports crude but imports all by-products of the resource, including the motor spirit.

“Rising oil prices may enforce more pressure on the tired naira while revenues from oil sales are likely to be drained by fuel subsidies.”