EXPLAINER: What would happen if the US banned Russian oil? | CP24.com
Matthew Daly and Cathy Bussewitz, The Associated Press
March 8, 2022
''Unlike the United States, Europe is deeply reliant on energy it imports from Russia. While the U.S. could replace the relatively small amount of fuel it receives from Moscow, Europe could not, at least not anytime soon.
Here is a deeper look:
WILL THERE BE A BAN ON RUSSIAN OIL?
Amid rising gasoline prices in the U.S. — the average price has topped $4 a gallon for the first time since 2008 — the Biden administration faces growing pressure to impose further sanctions on Russia, including a ban on oil imports. No decision has yet been made.
For now, a broad U.S.-European ban appears elusive. On Monday, German Chancellor Olaf Scholz made clear that his country, Europe’s single-largest consumer of Russian energy, has no plans to join in any ban. In response, U.S. Deputy Secretary of State Wendy Sherman hinted that the U.S. could act alone or with a smaller group of allies.
“We have not been completely identical on all of the sanctions,” Sherman said. “Not every country has done exactly the same thing, but we have all reached a threshold that is necessary to impose the severe costs that we have all agreed to.”
Though U.S. Secretary of State Antony Blinken has raised the possibility of a ban on imported Russian oil, Sherman noted, “he also said that we have to maintain a supply of oil,” perhaps through other means, to stabilize prices.
Even if a ban were enacted, the Biden administration and Congress “remain laser-focused on bringing down the higher energy costs for American families and our partners stemming from Putin’s invasion,” House Speaker Nancy Pelosi said.
Pelosi, who has expressed support for a U.S. ban on Russian oil, nevertheless also cited Biden’s action in leading U.S. allies to release 60 million barrels of oil from strategic reserves, including 30 million barrels from U.S. reserves, to try to stabilize global markets.
WHAT HAPPENS IF THE U.S. ACTS ALONE?
If the U.S. alone were to ban imports of Russian oil and refined products, the impact on Moscow would likely be minimal. The United States imports a small share of Russia’s oil exports and doesn’t buy any of Moscow’s natural gas.
The United States imports about 100,000 barrels a day from Russia, only about 5% of Russia’s crude oil exports, according to Rystad Energy. Last year, roughly 8% of U.S. imports of oil and petroleum products came from Russia.
The U.S. could replace Russian crude with imports from Saudi Arabia and the United Arab Emirates. For its part, Russia might find alternative buyers for that fuel, perhaps in China or India. Such a step “would introduce massive inefficiency in the market,” which escalates prices, said Claudio Galimberti, senior vice president of analysis at Rystad Energy.''
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