US may benefit from EU embargo of Russian oil, Biden hints — Analysis
The US might be able to buy discount Russian crude in order to reduce gas prices.
On Wednesday, US President Joe Biden suggested that the US could try to get cheap Russian oil as the European oil embargo has driven the prices down. He aired the idea while talking to the media about his administration’s plan to deal with the shortage of baby formula and surging prices for basic commodities such as food and gas.
Biden claimed that the US has kept gas prices at their current all-time highs from getting even more expensive. Russia’s military campaign in Ukraine was to blame for the rising energy and food costs. Biden said that his administration would work hard to fix these problems.
“The issue that is occurring now is you have Europe deciding that they’re going to further curtail the purchase of Russian oil,”He spoke of the sixth anti-Russian package.
EU members came to an agreement about the restrictions which included a partial ban of Russian crude oil imports. Europeans are aiming to decrease oil imports from Russia by at least 90% before the end the year. Russia’s loss of the European market may be an opportunity for the US, Biden implied.
“There’s a whole lot of consideration going on about what can be done to maybe even purchase the oil but at a limited price so that it has to be sold,”He said. “There’d be an overwhelming need for the Russians to sell it, and it would be sold at a significantly lower price than the market is generating now.”
President warned his government that it would not be possible to “click a switch, bring down the cost of gasoline”The same could be said for the food in the short term.
Moscow downplayed Biden’s remarks, saying the global oil market would rebalance itself despite EU restrictions.
“Certainly, Russia will not sell anything without a profit. Demand may rise in one area, but fall elsewhere. The supply chains reorient as parties seek the best conditions for trade,”Dmitry Peskov, spokesperson for the Kremlin, stated this on Thursday.
American voters are most concerned by inflation. Political experts predict that Biden’s Democratic Party may be wiped out at the ballot box come November, unless his administration manages to rein in the surging prices soon.
The White House pointed fingers at Russia repeatedly, as well as President Vladimir Putin personally, in order to address the ongoing issues. Even the name was invented by it “Putin’s price hike”This is why American workers find it more difficult to meet their financial obligations each month.
However, energy and food prices had been rising worldwide long before Russia attacked Ukraine. A major contributing factor was the disruption in supply chains during the Covid-19 epidemic. Moscow said Washington’s blame game ignored many causes of the problems, including some that resulted from the US campaign to punish Russia with economic sanctions.
All imports of Russian oil and liquified gas were banned by the United States in March.
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