Oil price surge: Crude cost spikes as Biden and Brexit Britain introduce Russian boycott

US President Joe Biden looked to hit the Kremlin where it hurts yesterday by introducing a ban on Russian oil. Speaking about the measures, the 46th President said: “That means Russian oil will no longer be acceptable at US ports and the American people will deal another powerful blow to Putin’s war machine.”

But Mr Biden’s move also comes as the national average price of gasoline in America jumped to $4.17 on Tuesday.

The increase broke the previous record which was set back in 2008.

Ex-POTUS Donald Trump responded to the rise by asking whether Americans “miss” him yet.

The UK also introduced a similar ban.

Business Secretary Kwasi Kwarteng confirmed the move in a thread on Twitter.

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The Spelthorne MP said: “The UK will phase out the import of Russian oil and oil products 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 8 percent of UK demand.”

He added: “The market has already begun to ostracise Russian oil, with nearly 70 percent of it currently unable to find a buyer.

“Finally, while the UK is not dependent on Russian natural gas – 4 percent of our supply – I am exploring options to end this altogether.”

Oil company shares rallied yesterday despite the announcement.

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BP closed five points higher in London and Shell was up by three percent, according to the Guardian.

The move is expected to heap the pressure on Moscow.

However, US imports from Russian energy are only estimated to be worth around eight percent, three percent of which is crude oil.

European leaders snubbed the US President in curtailing Russia’s economic influence as EU member states are estimated to get around 40 percent of their natural gas from Russia.

However, an economic expert has warned the ban from Biden and Brexit Britain will still see fuel prices rise, even without members from the Brussels bloc joining in.

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Michelle Linderman, a partner at law firm Crowell & Moring, said: “The announcements today by both the US and UK that they will ban Russian oil imports by the end of 2022 is significant but neither the US nor UK is particularly reliant on Russian oil.

“If the EU joins its allies then this would have a far greater impact on Russia.

“Russia’s economy is heavily dependent on the revenue generated from oil and gas exports and implementing restrictions on these sectors will inflict considerable pain on Russia.

“There will, however, be a cost.

“Not only will this likely lead to higher fuel prices but there is a serious risk that these steps provoke President Putin further.”

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