Oil price goes up again: Russia says it may cut gas supplies if oil ban goes ahead (March 8, 2022)

The price of oil has jumped again as the United States considers an embargo on Russian imports in response to the war in Ukraine. Russian deputy Prime Minister Alexander Novak said a "rejection of Russian oil would lead to catastrophic consequences for the global market", causing prices to more than double to $300 a barrel.

Next to that, the European Union is facing the possible closure of the main Russia-Germany gas pipeline if governments follow through on threats to cut energy supplies from Russia. The market instantly responded to it, causing the oil prices to be on their highest level since 2008 (and still increasing as we speak). Novak also said it would take Europe more than a year to replace the volume of oil it receives from Russia and it would have to pay significantly higher prices.

He made the following statements: "European politicians need to honestly warn their citizens and consumers what to expect," Novak said. "If you want to reject energy supplies from Russia, go ahead. We are ready for it. We know where we could redirect the volumes to."

Novak continued by saying that Russia, which supplies 40 percent of Europe's gas, was fulfilling its obligations in full but that it would be entirely within its rights to retaliate against the European Union after Germany last month froze the certification of the Nord Stream 2 gas pipeline.

"So far we are not taking such a decision," he said. "But European politicians with their statements and accusations against Russia push us towards that."

Sources: https://www.bbc.com/news/business-60656673 https://www.cnbc.com/2022/03/08/russia-warns-of-300-oil-if-ban-goes-ahead-threatens-to-cut-off-european-gas.html