From the US and the UK, stop importing Russian oil, what scenarios await us?

The UK and US embargo on Russian oil could have serious economic consequences in other countries of the world as well

He is about to end up run over, his mother saves him

It had been in the air for a few days, but yesterday the rumors were confirmed. The United States and Britain they will no longer buy Russian oil so as not to indirectly finance the war in Ukraine carried on by Putin The announcement came first from US President Joe Biden, then from London.

The United States made this decision in close consultation with our allies and partners around the world, as well as with members of Congress on both sides. - reads the note released by the White House - The US is able to take this step thanks to our solid national energy infrastructure and we recognize that not all our allies and partners are currently able to join us. But we are united with our allies and partners in working together to reduce our collective dependence on Russian energy and keep the growing pressure on Putin, while taking active measures to limit impacts on global energy markets and protect our own economies.

The US federal government has decided to no longer buy oil or coal from Russia. According to data from the US Energy Information Administration, Russian oil accounts for 3% of total US crude oil imports. And Dowing Street shortly thereafter also wanted to follow the example of the United States. British authorities said they will phase out Russian oil imports by the end of the year in response to Vladimir Putin's invasion of Ukraine.

The UK will move away from dependence on Russian oil throughout the year, building on our tough international economic sanctions package. - Prime Minister Boris Johnson said - By working with industry, we are confident that this goal can be achieved throughout the year, giving companies enough time to adapt and ensuring consumer protection.

Read also: Because the war in Ukraine hits us in the face with what we have not done with renewables

The consequences of the embargo

Of course, the stop to imports of Russian raw materials will not be without serious consequences worldwide, given that Russia is one of the largest oil exporters, together with the United States and Saudi Arabia. In the last few hours in the US, oil has already cost over $ 129 a barrel, with a jump of about 9% and costs could skyrocket in the next few days. According to the analyzes of the American financial services multinational JP Morgan, oil could reach the record of 185 dollars a barrel by the end of 2022 in case the interruption of Russian exports lasts any longer.

Moscow's reaction to the news of the embargo was not long in coming.

We have every right to make a corresponding decision and impose an embargo on pumping gas through the Nord Stream 1 pipeline - thundered Russian Deputy Prime Minister Aleksandr Novak, commenting on the Russian oil embargo and Germany's decision to block the authorization of the Nord Stream 2, warning of the "catastrophic consequences" for the world.

For Novak, Western countries could find themselves paying for oil as much as $ 300 a barrel.

Meanwhile, theOpec, the Organization of Petroleum Exporting Countries (which includes countries such as Saudi Arabia, Iraq, Iran, Kuwait and Venezuela) declared that it will undertake "to guarantee the security of oil supplies", stressing, however, that it does not have "control of the events that are influencing the market and are driving its trend ".

#OPEC SG, #MohammadBarkindo, shared a panel session titled ‘Assuring Stability in Energy Markets’ with Jeff Currie, Global Head of Commodities Research at Goldman Sachs. The packed session was moderated by Carlos Pascual, Senior Vice President, Global Energy, S&P Global. pic.twitter.com/InzBC3KR3w

— OPEC (@OPECSecretariat) March 9, 2022

The guiding principle of OPEC remains the stability of the global market - explained the secretary general of OPEC Mohammad Barkindo - But there is no production capacity in the world capable of replacing 7 million barrels per day of exports. And the narrowness of the market can lead to the destruction of demand.

For the moment, Europe does not seem willing to give up Russia's oil and gas imports, despite tensions are skyrocketing. The German Chancellor Olaf Scholz reiterated the no, underlining that this move would jeopardize the energy security of the Old Continent. A situation that strikes us a bitter truth: without renewable sources we are destined to remain slaves of Russia.

Sources: Gov.uk/Whitehouse.gov/Reuters