Joe Biden Warns of More Price Increases in the United States After Banning Russian Oil

Joe Biden Warns of More Price Increases in the United States After Banning Russian Oil

Oil and gas prices rose again on Tuesday after President Joe Biden announced that imports of oil, gas and coal from Russia are prohibited.
Oil and gas prices rose again on Tuesday after President Joe Biden announced that imports of oil, gas and coal from Russia are prohibited.

This Tuesday, the prices of gas and oil rose again this Tuesday after President Biden announced that imports of oil, gas and coal from Russia are prohibited to isolate this country from world markets.

This crackdown could further drive up gasoline prices that have already reached record highs.

“Today’s decision has a cost here at home. Putin’s war is already hitting American families at the gas pump. Since Putin began his military advance on the Ukrainian border, the price of gasoline in the United States has risen ¢75 cents. With this action it will increase more,” Biden said.

It should be remembered that Russia is one of the world’s largest energy producers, and crude oil prices rose sharply on Tuesday.

Brent crude, which is the global oil market benchmark, rose 4% to hit $129 a barrel , still very close to its previous high of about $133.

Since Russia invaded Ukraine on February 24, oil prices have risen 30% due to global fuel supply concerns. Although Western governments announced a series of harsh sanctions against Russia immediately after the invasion, the oil trade had not included in those measures.

Prices paid by consumers have already risen at their fastest rate in 40 years , which has obviously hit Americans’ pocketbooks the hardest.

“Higher prices at the pump (for gasoline) means less spending on other consumer goods. It reduces purchasing power, forcing people to change (their consumption habits), giving up an expensive steak for cheaper options,” said Beth Ann Bovino, an economist at S&P Global, according to The New York Times.

On Monday, the S&P 500 – which tracks the 500 largest companies listed on the Stock Exchange – suffered its worst one-day drop in more than a year, falling 3% . This occurred as oil prices began to rise in anticipation of the import ban the United States imposed on Russia today. The index recovered slightly on Tuesday, rising about 1%.

In addition to fuels, Russia is a big producer of commodities like wheat, aluminum and palladium, which are used in making cars and phones, so prices for those products have also skyrocketed.

Ben Oakley
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