Oil rises to a new record and approaching 150 dollars

On Monday, oil prices rose to their highest level since 2008, to almost $140 per barrel, following reports of a possible US embargo on imports from Russia.

In an interview with NBC, Secretary of State Anthony Blinken said the United States is “actively discussing”,
with its European allies the possibility of phasing out Russian oil imports.

Two Bloomberg sources said that Washington might impose an embargo without the participation of European allies.

In the meantime, no decision has been taken on this matter.

House Speaker Nancy Pelosi hinted that the House of Representatives is considering ,
the possibility of drafting a bill to embargo the import of Russian oil.

US official data show that Russia accounts for nearly 3% of US oil imports.

Against the backdrop of data from Washington, Brent oil futures rose by 18% in early trading on Monday and at one point exceeded $139 per barrel.

The futures price is about $129 per barrel.

“We believe that Brent crude could reach $185 per barrel by the end of the year if supply disruptions from Russia continue,”
analysts at JPMorgan Chase said.

The House of Representatives considers embargoing oil imports from Russia

The US House of Representatives is considering drafting a bill to embargo Russian oil imports.

“The House of Representatives is currently considering strong legislation that will further isolate Russia from the global economy“

“Our bill will embargo imports of Russian oil and energy products to the United States,
eliminate normal trade relations with Russia and Belarus,
and will be the first step towards preventing Russia from joining the World Trade Organization.

We will also allow the executive branch to raise tariffs on Russian imports.”

Pelosi also announced that Congress plans to provide $10 billion in aid to Ukraine this week.

“The Biden administration has requested $10 billion in humanitarian, military and economic aid to Ukraine.

This week Congress intends to pass emergency funding under our comprehensive public finance legislation,” the spokesman said in a statement.

American lawmakers from both parties had earlier called for sanctions affecting the Russian oil sector.

In the meantime, the White House administration asked Democratic senators not to support the law.

The adoption of the document may encourage other countries to follow the United States, which is likely to increase prices globally.

Chinese customs: Sino-Russian trading volume increased by 38.5%

Chinese-Russian trading from January to February 2022 was $26.43 billion,
an increase of 38.5% over the same period last year, according to Chinese customs statistics released Monday.

According to the General Customs Administration of the People’s Republic of China,
Russian exports to China increased by 35.8% over this period to $13.8 billion,
and Russia imported goods and services from China by $12.6 billion, with an annual growth of 41.5%.

In 2021, Russian-Chinese trade reached a record high of over $148.8 billion, an increase of 35.8% over 2020.

Another blow to Russia American Express suspends transactions in the country and a similar resolution from Visa and Mastercard

International payment company American Express suspended transactions in Russia and Belarus due to a private military operation in Ukraine,
following a statement by the company’s CEO Stephen Square.

The statement said: “As a result, American Express cards issued worldwide will not operate in stores or ATMs in Russia.

In addition, cards issued by Russian banks in Russia will not operate outside the country on the American Express global network.

Business operations in Belarus.

The Foundation earlier stopped working with partner banks on the sanctions lists.

Visa and Mastercard announced on Sunday the termination of work in the Russian market.

On March 10, these payment system cards issued in Russia will not operate abroad and will not be accepted for payment in foreign online stores.

These cards will continue to operate as usual within the country until the expiration date,
as operations have been processed through the national payment card system since 2015.

The Russian economy is expected to decline by 7%

Rating agency Moody’s predicted that the economy of the Russian Federation in 2022 ,
will decline by 7% against the backdrop of severe sanctions and their consequences.

In 2023, Russia’s GDP will continue to decline,
according to the release of the agency dedicated to downgrading the Russian Federation’s sovereign rating to a near-hypothetical level of “Ca”.

This is one of the first related forecasts about the depth of the Russian economy’s collapse.

So far, most analysts whose previous assessments have become irrelevant after the severe wave of sanctions, have not published any new projections.

“The continued depreciation of the ruble will have adverse economic consequences of increasing inflation and falling living standards,” the statement said.

While foreign exchange flows from Russian oil and gas exports could mitigate the impact of severe sanctions,
Moody’s believes this does not rule out a high probability of long-term economic shocks and increased vulnerability to shocks.

In addition, further tightening of sanctions against Russia by Western countries could affect a vital source of foreign exchange and government revenues.

The Agency warned that Russia would not soon be able to restore its investment rating, which it had until recently, even under an optimistic scenario.

Oil goes up to $140 and new major decisions against Russia

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