Debate intensifies over proposals for Russian oil ban

Debate intensifies over proposals for Russian oil ban

Good evening,

Oil prices surged again today after the US appeared to be considering a ban on imports of Russian crude, as Europe desperately seeks new sources of energy amid the threat of a potential recession.

US energy editor Derek Brower looks at the current crisis in the context of the great oil shocks of the past. The closest parallel is in 2008, he writes, when Russian troops were preparing to invade another former Soviet republic (Georgia), crude prices were soaring and western countries were pleading with Saudi Arabia to open the taps.

The US oil price eventually hit an all-time high of nearly $150 a barrel, but — with the price of benchmark crude briefly topping $139 a barrel today — that record may not stay for long, he argues.

Yesterday, US secretary of state Antony Blinken said a ban on Russian oil was under “very active discussion” with European allies, resulting in the latest price spiral. This would be a serious escalation of the sanctions programme, with important implications for the world economy, especially in Europe.

As one head of research puts it: “Oil’s rally will accelerate inflation, rates will go much higher, financial conditions will tighten significantly, consumers will be squeezed and