Germany is likely to join several other European nations in a possible embargo against Russian crude oil.
The country had been a holdout in a potential Russian-oil embargo. Now the entire 27-member European Union has to decide when and to what extent it might restrict imports of Russian crude.
Matt Smith, lead oil analyst for the Americas at Keplr, tells Texas Standard that Germany’s about face is a big deal in the Western response to Russia’s invasion of Ukraine.
Highlights from this interview:
– Smith calls Germany’s willingness to consider a Russian oil embargo a “sea change.” So far, Germany has been a significant holdout, against such an embargo – and an important one because it’s one of Russia’s biggest purchasers.
– Cutting themselves off from Russian oil means Europeans countries will have to make big sacrifices when it comes to energy. That’s why Smith says any embargo will likely be phased in gradually.
– Europe will replace some of its Russian oil with imported crude from the United States.
– Smith expects gasoline prices to remain high. Diesel prices are climbing as well. In fact they reached a record-high average on Monday at $5.32 per gallon.