Edward Price is a non-resident Senior Fellow at New York University’s Center for Global Affairs. In this post he explains why following President Biden’s ban on Russian oil imports, the aim of US foreign policy is at odds with the aim of American economic policy.
A year ago, the average price in the US for regular gasoline was under $3 a gallon. Not bad. A month ago, before Russia’s invasion of Ukraine, it was almost three and a half. Not great, but not terrible either. Now, after President Biden’s ban on Russian oil imports, it’s above $4. That sucks.
America may not import much Russian crude oil -- only about 8 per cent of its total demand -- but a combination of broader global sanctions on Russia and the US oil ban snarled supply. Buyers and refiners became leery of touching Russia’s black gold. Traders speculated on more disruption. Prices spiked (though have since drifted down).