Russian To Judgment, Con't

The White House is considering sanctioning Russian oil exports over Ukraine as part of the snowballing sanctions by the US and EU.

 

The possibility of the US sanctioning Russian oil exports is "still on the table" as President Joe Biden looks for more ways to punish the country for its invasion of Ukraine, White House press secretary Jen Psaki said Wednesday. 

Taking such a step would be an extraordinary measure that could have an intense effect on domestic gas prices, however, and Psaki made clear that the White House's top priority is to minimize the impact at home. 

"What (Biden) does not want to do is topple the global oil markets or the global marketplace or impact the American people more with higher energy and gas prices," Psaki told CNN's John Berman on "New Day." 

"That's something we heavily weigh. It's still on the table. It's not off the table. But again, that's how the President looks at this as we're announcing and pursuing additional steps," she added. 

The US has already announced a slew of sanctions against Russia and President Vladimir Putin since the country's unprovoked invasion of Ukraine last week. But the unprecedented step of sanctioning its oil experts would likely send prices skyrocketing, dealing a painful blow to consumers around the world as Russia is the world's No. 2 oil producer. 

Though the US consumes very little Russian oil -- oil imports from Russia stood at just 90,000 barrels per day in December -- the interconnected global market means supply shocks in one part of the world can impact prices everywhere.

 

However, that 90,000 barrels per day is almost certainly going to be blocked by Congress whether Biden wants it or not.

U.S Senator Joe Manchin is calling for President Joe Biden to halt oil imports from Russia, following its invasion of Ukraine last week.

The West Virginia Democrat said it was "hypocritical" to ask other countries to, "do what we can do for ourselves."

"If there was ever a time to be energy independent, it is now," Manchin said. "While Americans decry what is happening in Ukraine, the United States continues to allow the import of more than half a million barrels per day of crude oil and other petroleum products from Russia during this time of war."

Manchin has been openly critical of Biden's efforts to scale back U.S. oil production in a bid to address climate change at the same time he has called on OPEC+, of which Russia is a member, to pump more crude to offset recent price increases.

 

Senators ranging from Kansas Republican Roger Marshall to Massachusetts Democrat Ed Markey want to ban Russian oil imports, and that seems like a bill that will be on Biden's desk with a veto-proof margin before the end of the month, if not in the next week or two.

 

On the other hand, Biden knows this will drive gas prices higher, especially international sanctions on Russian oil, but the US blocking imports will still force oil higher. It's already at $110 a barrel. It's a trap and Republicans will blame Biden in every commercial from now until November 2024 if he does, even if Republicans are forcing him.

On the gripping hand, of course we're in the middle of a European Land War™ so all bets are off.