A man pumps gas into his vehicle at a petrol station in Montebello, California on February 23, 2022, as gas prices hit over $6 dollars per gallon.
Frederic J. Brown | AFP | Getty Images
Oil prices jumped to their highs of the session with the U.S. set to ban Russian oil imports.
WTI crude oil rose about 4% to near $124 a barrel. Brent crude oil, the international benchmark, jumped 4% to above $128 a barrel.
The U.S. will announce a ban of Russian oil imports as soon as today, NBC News reported. The ban would be without European participation and include liquefied natural gas and coal, according to a Bloomberg News report.
The market has already been self-sanctioning the Russian energy complex, with buyers avoiding the nation’s oil.
“Estimates vary but it is probably fair to say that should an import ban be imposed on Russia the additional volume that becomes unavailable would be relatively limited,” said Tamas Varga at brokerage PVM.
Prices at the pump surge
Americans are now paying the most at the pump on record as energy prices surge, contributing to rampant inflation that’s hitting all areas of the economy.
The national average for a gallon of regular gas rose to $4.173 on Tuesday, according to AAA.
The prior record was $4.114 from July 2008, not adjusted for inflation.
Tuesday’s new high follows a sharp spike in gas since Russia invaded Ukraine, sending oil prices surging.
Consumers are paying 55 cents more than one week ago, and about 72 cents more than last month.
Oil prices, meantime, jumped Sunday to prices last seen in 2008.
West Texas Intermediate crude futures, the U.S. oil benchmark, traded as high as $132.07. International benchmark Brent crude hit $139.13. But both settled well below those highs during Monday’s trading session.
Experts expect oil prices — and therefore prices at the pump — to remain elevated.
Russia is a key oil and gas producer and exporter, and the country’s war on Ukraine is disrupting the global market.
“Given Russia’s key role in global energy supply, the global economy could soon be faced with one of the largest energy supply shocks ever,” Goldman Sachs said Monday in a note to clients.
