Brent crude prices soared to $105 per barrel for the first time since 2014 as Russian President Vladimir Putin sent Russian troops into the territory of neighbouring Ukraine. The rising prices can be attributed to various sanctions imposed by the US and Europe on Russia, the third-largest oil producing nation and second-largest oil exporter in the world.
However, the prices of brent crude oil are currently hovering at around $101 per barrel, as the US left out Russia’s oil and gas exports from the sanctions imposed on the country. The sanctions are majorly targeted towards Russia’s financial institutions, economy, defence and its access to technology.
“The United States, along with Allies and partners, is imposing severe and immediate economic costs on Russia in response to Putin’s war of choice against Ukraine. Today’s actions include sweeping financial sanctions and stringent export controls that will have profound impact on Russia’s economy, financial system, and access to cutting-edge technology. The sanctions measures impose severe costs on Russia’s largest financial institutions and will further isolate Russia from the global financial system,” The White House said in a media release on Thursday.
Besides the US, countries like the UK, Australia, Japan, Germany, Ukraine and the 27-member bloc European Union have also announced stringent sanctions on Russia.
The value of Russian exports of crude oil amounted to over $110.1 billion in 2021, up 52 per cent from the previous year. The 2020 export value was the lowest over the past decade, according to Statista.
The crude oil prices have jumped exponentially in the wake of the Russia-Ukraine war after the prices of West Texas crude had dropped to below $0 per barrel during April-2020 as the world went into a lockdown due to the pandemic.
Source: Fibre2Fashion News Desk (KD)