Oil rises after US and UK ban Russian imports

Oil rises after US and UK ban Russian imports

Oil benchmarks rose and commodity prices climbed after the US and UK agreed to ban Russian oil and gas imports to punish Vladimir Putin for the invasion of Ukraine.

Brent crude, the international benchmark, rose as much as 2 per cent to $130.48 a barrel, while US marker West Texas Intermediate jumped as much as 2.2 per cent to $126.44.

Both contracts closed Tuesday’s session up more than 3 per cent after President Joe Biden banned imports of Russian oil and gas into the US. The move was matched by the UK’s phaseout of Russian oil imports while the EU decided to cut Russian gas imports by two-thirds within a year.

“Russian oil will no longer be acceptable at US ports and the American people will deal another powerful blow to Putin’s war machine,” Biden said.

The ban on US and UK imports marks the latest escalation in sanctions on Russia over its invasion, which has rocked global commodities markets. The S&P 500 closed at its lowest level since June 2021 on Tuesday as commodity prices surge to record highs on fears of large-scale, sustained disruption.

European natural gas contracts have risen by more than 200 per cent over concerns that Russian supply could be