Oil prices surge on expectations of US, Britain announcing ban on Russian crude

Oil prices surged on Tuesday on expectations that the US and Britain will announce a formal ban on Russian crude oil imports.

Oil prices rose on Tuesday, with Brent surging past $132 a barrel on expectations that the United States and Britain will announce a formal ban on Russian oil imports, stoking supply concerns.

Benchmark Brent crude for May had climbed by almost 7 per cent to $131.8 a barrel by 1517 GMT. US crude for April delivery was up 7 per cent at $127.82.

Prices climbed after a source said the United States, the world's biggest oil consumer, could announce a ban on Russian oil imports as soon as Tuesday in response to Russia's invasion of Ukraine.

The White House said U.S. President Biden would announce actions to hold Russia accountable at 1545 GMT after sources said Washington was willing to impose such a Russian oil import ban even without its European allies.

Britain is also expected to announce at 1600 GMT a ban on Russian oil imports, Politico reported, citing Whitehall officials.

The ban is expected to be a gradual phasing out over time and is expected to last about a year to try to stop people panic-buying fuel.

An import ban by Europe and the United States on Russian oil could send global oil prices to $200 a barrel, analysts at Oslo-based consultancy Rystad Energy said on Tuesday.