NY Times: Sanctions on Russian oil could hit US economy

The Washington administration has imposed further sanctions on Russia resulting from its army motion in Ukraine.

US President Joe Biden mentioned in a press release yesterday on the White Home, “We ban all oil, fuel and vitality imports from Russia.” mentioned.

“It MAY HAVE CONSEQUENCES FOR THE US ECONOMY”

The New York Instances newspaper introduced up the unfavourable results of Biden’s transfer for the US economy.

It was warned that the ban on Russia’s vitality imports could have “significant” penalties for the US economy, and that gasoline costs could rise much more at a time when inflation is on the rise.

PROHIBITION DECISION ON RUSSIA

The ban determination covers the import of Russian oil, liquefied pure fuel and coal. It additionally prohibits new US investments in Russia’s vitality sector. Alternatively, People are prevented from financing overseas firms that make investments to provide vitality in Russia.

THE AVERAGE GASOLINE PRICE IN THE USA MAY SEE $4.50

Within the information, “Europe will get far more of its provide from Russia than the US, however vitality markets are world and even the mere menace of a ban has pushed commodity costs increased in current days.” it was mentioned.

Omair Sharif, founding father of Inflation Insights “Issues have been very unstable.” mentioned. Pointing to the scenario in Ukraine, Sharif famous that the typical gasoline worth within the US could see round $4.50 this month.

FORECAST OF BARREL PRICE OF OIL

Economist Caroline Bain mentioned the ban in lots of nations would “severely disrupt world vitality provide and additional improve already excessive commodity costs”.

Bain estimates that on this case, the value of Brent crude oil could attain round $160 per barrel. Brent oil worth rose practically 6 % to $130 a barrel at noon on Tuesday.