Surge In Oil And Natural Gas Prices:
The U.S. announced the banning the import of Russian oil, liquefied natural gas, and coal to the country.
- The move is aimed at depriving Russia of the economic resources needed to continue its war in Ukraine.
- In the run up to the U.S. announcement, international oil prices surged to a 14-year high with Brent crude futures hitting USD139.13 intraday.
- Russia is the world’s third-largest oil producer, trailing only Saudi Arabia and the United States.
- In January 2022, Russia’s total oil production was 11.3 million barrels per day (mb/d), of which 10 mb/d was crude oil, according to the Paris-based intergovernmental International Energy Agency (IEA).
- Russia is the world’s largest exporter of crude and oil products, having shipped 7.8 mb/d in December 2021, and the second largest supplier of crude to the world with only Saudi Arabia exporting more crude than it.
- Russia is also a major exporter of natural gas and supplied almost a third, or 32%, of the gas consumed in Europe (and the U.K.) in 2021.
- The revenue it made from the sales of oil and gas in 2021 accounted for 36% of Russia’s total revenue of 25.29 trillion rubles last year.