US can handle oil price impact of increasing pressure on Russia: US Senator

The US can withstand crude price increases that could result if Washington tightens the screws on Moscow, one of the lead Senate sponsors of pending US sanctions legislation said Nov. 19.

"I think whatever the cost, number one, it can be minimized. Number two, it's worth it," Senator Richard Blumenthal, Democrat-Connecticut, said at an event hosted by the Center for Strategic International Studies.

"We are a great country and a great economy, and we can absorb that minimal additional cost in crude, and potentially it can help to generate interest in other sources of energy," Blumenthal said.

Senator Lindsey Graham, Republican-South Carolina, said that the US can economically benefit from the end of the Ukraine war due to the critical minerals deal that US President Donald Trump signed with Ukraine.

Trump, in signing the deal, changed the image of the war among Republicans, Graham said. "We're making a case that Ukraine benefits America. Ukraine's stability is good for the American economy, and Ukraine brings to the table critical minerals up to a trillion dollars or more," he said.

Graham and Blumenthal are the lead Senate sponsors of legislation that would impose primary and secondary sanctions against Russia and actors supporting Russia's war in Ukraine if Russia fails to engage in good-faith negotiations.

The measure would also impose a 500% tariff on imported goods from countries that purchase Russian oil, gas, uranium, and other products, according to a statement released by Graham's office in April when the bill was introduced.

Congress will be moving on the legislation soon, Graham said recently on X, formerly known as Twitter.

"President Trump said over the weekend, send me the bill, so we need to send him the bill to help end this war," Graham said at the CSIS event.

Peace plan

Reports that the US could soon announce a Russia-Ukraine peace plan do not negate the need for the legislation, Graham said.

"I'm glad that we are coming up with a plan, but no plan will work unless Putin and his allies believe that we're serious about more military aid, more capability of Ukraine to hurt Russia militarily, and more economic ruin coming to those who prop up Putin's war machine," Graham said.

Crude oil futures ended the Nov. 19 session lower as geopolitical risk premiums eased on the heels of reports that the US could imminently announce a Russia-Ukraine peace deal, analysts said.

"Prices are coming off on the back of a report from Politico that a peace deal with Russia could happen this week," United ICAP analyst Scott Shelton said.

Front-month NYMEX December WTI settled $1.30 lower at $59.44/b, and ICE January Brent declined $1.38 to end the session at $63.51/b.