Things are heating up between Ukraine and Russia, and the U.S. is slowly stepping into the middle of all of it. Many companies have chosen their side already by banning all sales or any operations in Russia. Even the Chinese-owned app Tiktok has decided to pull back from Russia. But recently, the White House has hinted that they will be banning Russian oil imports. The U.S. uses roughly 20.6 million barrels of oil a day, but we only import 125,690 barrels on average from Russia. As a result, less than 1% of all oil we use in the United States is Russian. So What will this mean for Americans?
The embargo on Russian oil will do nothing for the United States; we will feel the effects less. Russia will also feel nothing unless we get the entire E.U. to join in. This is a possibility as many nations in Europe have condemned the actions of Russia, but there is one holdout that may prove to be the folly to this plan. Germany. Germany spends roughly $188,126,438,500 on oil from Russia. Europe has been very dependent on Russia for energy, and like Americans, Europeans don’t want to see their gas prices rise.
The Biden Administration is being pushed to impose these sanctions on Russia despite increasing gas prices. However, this is speculated to cause another massive hike in gas prices. Americans are already feeling it, and it’s not getting any better any time soon. Unless the entire E.U. gets on board with the embargo, Russia will not feel the effect of just a U.S. sanction. Americans will see a price hike again as speculators rush to buy oil as they did when the Keystone Pipeline was shut down. [Source Associated Press]
Investor’s Edge with Gary Kaultbaum can be heard on weekdays on MoneyTalk 1010. Gary Kaltbaum is a registered investment advisor with more than 30 years of experience in the markets. He is the owner and President of Kaltbaum Capital Management, a financial investment advisory firm headquartered in Orlando, Florida. He is a Fox News Channel Business Contributor regularly appearing on Fox News Channel and the Fox Business Network. In addition, Gary is the author of the book “The Investors Edge” and the host of a nationally syndicated radio show with the same title, “Investors Edge,” broadcast on numerous stations across the U.S. The show is also available on-demand and airs live 6-7 pm EST Monday-Friday. You can hear past shows online at garykaltbaum.com.
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