Russian Oil Embargo Pushes OPEC to Take Sides

Russian Oil Embargo Pushes OPEC to Take Sides

A Russian oil embargo ramps up pressure on the Organization of the Petroleum Exporting Countries to increase production or side with Russia. As the war in Ukraine becomes a proxy conflict in a new Cold War, the cartel can’t hope to maintain its current studied neutrality.

President Biden banned imports of Russian oil on Tuesday, sending the price of Brent crude to an intraday high of $133 a barrel. The U.K. may soon follow, but the key export market for Russian oil is Europe. Many buyers already were avoiding Russian crude due to fears of breaching financial sanctions or hurting their reputations. European energy giant Shell on Tuesday even announced its own private boycott of Russian oil and gas and apologized for buying a cargo of Russian oil last Friday, after coming under public pressure.