FX.co ★ Biden bans Russian oil imports

Crude oil prices experienced high volatility after US president Biden announced a ban on Russian oil imports to the United States.

"Today I'm announcing the United States is targeting the main artery of Russia's economy. We're banning all imports of Russian oil and gas and energy. That means Russian oil will no longer be acceptable at US ports, and the American people will deal another powerful blow to Putin's war machine," the US president said.

The commodity market has barely reacted to the US sanctions – they have already been priced in since last Monday. Oil prices are continuing to rise strongly – WTI futures with delivery in April traded above $128 per barrel yesterday, gaining more than 7% during the day.

Since the beginning of the crisis in Ukraine, crude oil prices rose by about 70%.

Biden accepted that several European nations would not follow the US ban, He stated that the United States and allies are preparing a long-term strategy for reducing the European dependence on Russian energy supplies.

April gold futures closed at $2,063.50 per ounce, gaining more than 3% and settling slightly below the new all-time intraday high.

Analysts see gold prices remain high due to the war in Eastern Europe rattling the markets. Furthermore, the escalation could increase inflationary pressure on the US economy and raise record high gasoline prices even higher.

Joe Biden warned US consumers about the impact of American sanctions on its economy. "Since Putin began his military buildup on Ukrainian borders, just since then, the price of the gas at the pump in America went up 75 cents.And with this action, it's going to go up further," he said.

The US president pledged to release 60 million barrels of oil from reserves together with US allies, in response to growing criticism and accusations that the White House is exacerbating the growing energy crisis.

"It should motivate us to accelerate the transition to clean energy," Biden commented. "That'll mean tyrants like Putin won't be able to use fossil fuels as weapons against other nations", he concluded.