U.S. President Joe Biden signed an executive order at the White House this month announcing that the U.S. banned imports of Russian oil, liquefied natural gas and coal due to the Ukraine issue. The executive order also prohibits new investments by U.S. individuals and entities in the Russian energy sector, while prohibiting U.S. citizens from providing financing or guarantees for foreign companies investing in Russia to produce energy.
Biden's speech, on the one hand, emphasized the unity of the United States and Europe on Russia's position, and on the other hand implied Europe's dependence on Russian energy. Biden also admitted that while the United States adopts this sanctions ban to put pressure on Russia, it will also pay for it.
On the day Biden announced the Russian oil ban, the average U.S. gasoline price hit a record high since July 2008, rising to $4.173 a gallon. According to data from the U.S. Energy Information Administration, in 2021, the United States will import about 245 million barrels of crude oil and petroleum products from Russia, a year-on-year increase of 24%.
The White House issued a statement on the 8th saying that in order to curb the rise in oil prices, the US government has promised to release 90 million barrels of strategic oil reserves this fiscal year. At the same time, it will increase domestic oil and gas production in the United States, and U.S. crude oil production is expected to hit a new high next year.
In response to the upward pressure on domestic oil prices, the Biden administration has released 50 million barrels and 30 million barrels of strategic oil reserves in November last year and March this year, respectively. As of March 4, the U.S. Strategic Petroleum Reserve had fallen to 577.5 million barrels, according to the U.S. Department of Energy.
