US President Joe Biden Bans Russian Energy Imports

US President Joe Biden Bans Russian Energy Imports

US President Joe Biden will sign an executive order on Tuesday to ban the import of Russian oil, liquefied natural gas and coal to the US following Russia’s invasion of Ukraine, the White House said in a statement.

The White House said this is “a significant action with widespread bipartisan support that will further deprive President Putin of the economic resources he uses to continue his needless war of choice.”

The move is so far unilateral. “The United States is able to take this step because of our strong domestic energy infrastructure and we recognize that not all of our Allies and partners are currently in a position to join us,” the statement said. Oil prices were higher on Tuesday after the US ban was announced.

The European Commission also set out a plan on Tuesday to reduce European dependence on Russian gas by two-thirds this year and eliminate it before the end of this decade. On the same day, the UK unveiled a proposal to phase out the import of Russian oil and oil products by the end of 2022.

Russian supplies account for a third of total crude oil imports by Europe, Commerzbank said in a research note on Tuesday.

By contrast, the US imported 20.4 million barrels of crude oil and oil products per month from Russia last year, or about 8% of US liquid fuel imports, the note said, citing the US Energy Information Administration.

West Texas Intermediate crude oil also pared its gains, up 3.3% to $123.29, after trading 7.2% higher earlier in the session, following the announcement of the ban.

The Dow Jones Industrial Average jumped 1.7% to 33,363.81, with the S&P 500 up 1.7% to 4,271.15, and the Nasdaq Composite more than 2.4% higher at 13,134.23. All three indices traded lower earlier in the session.

Consumer discretionary, consumer services, and energy led the gainers, while consumer staples, utilities, and healthcare were the three decliners after midday on Tuesday.

Gold for April delivery retraced its steps and was up $39.8 to $2,034 per troy ounce, after earlier touching the $2,075 per ounce mark. The US 10-year Treasury yield jumped 12.6 basis points to 1.88%. #US President Joe Biden Bans Russian Energy Imports