We urgently call on the powerful exporting countries, led by Saudi Arabia, to increase the level of production to ease the market.”
Robert Habeck, German Economics Minister.
The president of the United States, Joe Biden, vetoed the import of Russian oil. This Tuesday he determined an embargo on the import of Russian oil and gas, to increase the sanctions imposed on Russia and “deal another heavy blow” to President Vladimir Putin.
Almost simultaneously, the UK announced that it will suspend energy imports from Russia before the end of 2022.
And in Brussels, the European Union (EU) announced that it intends to cut its gas imports from Russia by two-thirds this year, ahead of a bloc summit to examine how to end dependence on Russian hydrocarbons.
“This transition will give the market, businesses and supply chains more than enough time to substitute Russian imports, which account for 8% of UK demand,” Business and Energy Minister Kwasi Kwarteng tweeted.
This decision was made “in close coordination” with US allies, Biden said. “We will not help subsidize Putin’s war,” the US president added.
Germany asked the Organization of the Petroleum Exporting Countries (OPEC) on Tuesday to increase its production to mitigate the rise in the price of a barrel, caused by the war in Ukraine.
Economy Minister Robert Habeck launched an “urgent appeal to the powerful exporting countries, led by Saudi Arabia, to increase the level of production to relieve the market.”
Europe refuses to impose an embargo on these Russian imports, which cover 40% of its needs for natural gas and 30% for oil.
According to Japanese media, Japan is also considering, among other options, the application of an embargo on Russian energy imports.
Yesterday the price of shares of oil companies rebounded in the stock markets. BP titles rose 5.12%, Chevron 5.24%, Shell 2.4% and Repsol among others, 2.63 percent.
The United States is a net exporter of energy, that is, it produces more oil and gas than it consumes, Biden recalled. “We can make this decision, while others cannot.”
“But we are working closely with Europe and our partners to put in place a long-term strategy to reduce their dependence on Russian energy,” he said.
He is well aware that this strategy could benefit the United States, which exports liquefied natural gas to Europe, a possible alternative to Russian gas.
“We remain united in our intention to maintain increasing pressure on Putin and his war machine,” added the US head of state.
Oil prices continued their unstoppable rise after the announcement.
A barrel of North Sea Brent for May delivery closed up 3.87% in London at $127.98. And in New York, the barrel of West Texas Intermediate (WTI) for April gained 3.60% to 123.70 dollars.
The price of the Mexican export mix ended the session on Tuesday with a rise of 3.42% or 3.96 dollars, at 119.62 dollars a barrel.
Mexico without problems
Mexico will obtain budget surpluses due to the sharp rise in oil prices, which it will use to subsidize fuels and contain inflation, President Andrés Manuel López Obrador announced on Tuesday.
“We are fortunate to have oil (…). We are obtaining surpluses. We will use them to subsidize fuels, so that the price of gasoline and diesel does not increase and that it does not affect us,” López Obrador said at his conference. daily Press.
The price of Mexican crude, calculated at $55.1 per barrel in the 2022 national budget, has shot up to $119 as a result of the war in Ukraine.
“If we don’t control the price of fuel and electricity, everything goes to the clouds,” López Obrador warned. The president aspires to raise fuel subsidies, despite the fact that the state oil company Pemex is in deficit.
In 2021, Pemex accumulated losses of 224,363 million pesos (about 10,900 million dollars), which however meant a reduction of 56% compared to the 509,000 million pesos (about 24,800 million dollars) of loss that it reported in 2020.
López Obrador estimated that the price of a barrel of oil could reach $200 if the Russian invasion persists, which led to a battery of international sanctions against Moscow.
The price of gasoline reached a new record in the United States on Tuesday, driven by the rise in crude oil and the sanctions imposed on Russia.
On Tuesday the price of a gallon (3.78 liters) was $4.17, up from the previous record of $4.11, which dates back to 2008, according to the AAA drivers’ association. In one month, the average price of gasoline increased 20 percent. In California, where a local tax is added to the federal tax, the average price reached $5.44 on Tuesday.