“It would be $300 per barrel, if not more,” says Russian Deputy Prime Minister Alexander Novak. According to him, a Western ban on Russian oil imports can indeed result in a price spike.
Russian Deputy Prime Minister Alexander Novak said on state television on Monday that it was “clearly apparent” that rejecting Russian oil would have “catastrophic repercussions for the world economy.”
This warning comes as the US announced that it was considering blocking Russian oil imports with its European allies in order to increase heat on Moscow over its invasion of Ukraine.
Following its attack on Ukraine, Western nations have slammed Moscow with a torrent of sanctions, with Washington targeting technology exports to Russian refineries and the Nord Stream 2 pipeline project, which was created to transport gas from Russia to Germany.
According to the White House, US President Joe Biden discussed the matter with his counterparts in France, Germany, and the United Kingdom during a conference call on Monday.
Biden is facing increasing calls from US lawmakers to cut Russia off from the money it receives from oil and natural gas exports.
However, according to a spokesperson, Biden has not made a choice “at this point.”
German Chancellor Olaf Scholz warned against a ban on Russian oil and gas imports early on Monday, saying that Russian energy imports were “vital” to Europeans’ everyday life.
Unbothered Russia
According to Novak, Russia’s deputy prime minister, if Europe aid in banning Russian oil and gas, it really would require over a year for nations on the continent to substitute the amount of oil they get from Russia, and they would have to pay far higher costs.
Russia is the world’s biggest supplier of crude and oil products combined, with roughly 7 million barrels per day, or around 7% of global production, It also delivers 40% of Europe’s gas.
According to Novak, “European politicians need to honestly warn their citizens and consumers on what to expect.”
Novak made known that they can go ahead and refuse Russia’s energy supply. Stating emphatically that they are ready for it and furthermore, have a plan in place to reroute the traffic.
Benchmark US crude rose to $130 a barrel overnight on Monday morning, then fell to around $119 in afternoon trading, a 3% gain. The international price soared to $139 per barrel before plummeting to around $123.
Also Read: Russia-Ukraine WAR: NATO OR RUSSIA Who is At Fault? [VIDEO]
