FRANKFURT, Germany (HPD) — Oil prices rose Monday as the first measures to limit Russia’s oil profits after the invasion of Ukraine were implemented, raising uncertainty about how much crude the world economy will be short of, either because of new sanctions or by Russian retaliation.
Brent crude, the international benchmark, rose 2% to $87.30 a barrel, the day after OPEC+, including Russia, decided not to alter production as it was unclear what impact sanctions against Moscow would have. . On Monday, he launched an embargo on most Russian oil and a $60-a-barrel cap on Russian exports, imposed by the European Union and the Group of Seven.
The ban on Russian seaborne oil is “by far the biggest move to date to cut the profits from hydrocarbon exports that are enabling Russia’s barbaric invasion of Ukraine,” said Lauri Myllyvirta, an analyst at the Center for Research on Energy and Clean Air, based in Finland.
“Took a while, but this is quite possibly one of the strongest responses against Putin’s war in Ukraine,” tweeted Simone Tagliapietra, an expert on energy policy at the Bruegel Institute in Brussels.
Western leaders are trying to find a happy medium between cutting Russia’s oil revenues but not causing a rise in prices to worsen the inflation that is already affecting millions of people around the world. But Moscow has warned that it will not sell oil to countries that apply the price cap, raising fears of a drop in supplies and a rise in prices that will eventually lead to a rise in the price of gasoline.
Contributing correspondents Raf Casert in Brussels and Sheikh Saaliq in New Delhi.