Oil prices hit a 14-year high on Monday as the Biden Administration considers its options, including a potential ban on Russian energy or a trip to Saudi Arabia to try and receive more oil.
Sanctions against Russia’s oil exports have been avoided thus far in an effort to minimize economic repercussions in Europe and the US. A gallon of gas in America now costs at least $4 a gallon, with some stations in Los Angeles reportedly charging a whopping $7 a gallon.
The possibility of sanctions have spurred the price of Brent crude oil, the global benchmark, above $130 per barrel, the highest it has cost since 2008.
‘We are now talking to our European partners and allies to look in a coordinated way at the prospect of banning the import of Russian oil,’ Secretary of State Antony Blinken told CNN on Sunday. ‘That’s a very active discussion as we speak.’
Sanctions against Russian oil would not only raise gas prices globally, but it would increase inflation in the US, which is currently at a 40 year high.
Officials in the Biden Administration reportedly want to keep as many options open as possible, including the chance to make amends with Saudi Arabia and convince them to increase their oil production over fears of a global supply shortage, according to Axios.
The planning of a possible Biden visit to the Kingdom is still in the early phases, but it’s likely he will make several trips in the coming months to visit US allies to ensure a united front.
Mounting tensions caused by Russia’s invasion into Ukraine have caused what appears to be a shift in world alliances, as Biden considers his visit to Saudi Arabia, a country he has previously critiqued for its human rights violations.
Last year Biden ordered the release of CIA documents that blamed Saudi Arabia and its leader, Crown Prince Mohammed bin Salman, for the murder of Washington Post columnist Jamal Khashoggi.
In recent months the President has also reportedly called on Gulf countries to produce more oil at reduced prices — a request Saudi Arabia has declined.
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