Oil Price surge: Petroleum skyrockets as ExxonMobil to shut down oil production in Russia
Boris Johnson discusses EU's 'addiction' to Russian oil and gas
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The move is likely to hit UK consumers at petrol pumps as the price of fuel continues to rise. The oil giant also promised not to make any new investment in Russia.
In a statement, the company said the decision taken followed Vladimir Putin’s invasion of Ukraine.
They said: “ExxonMobil supports the people of Ukraine as they seek to defend their freedom and determine their own future as a nation.
“We deplore Russia’s military action that violates the territorial integrity of Ukraine and endangers its people.
“We are deeply saddened by the loss of innocent lives and support the strong international response.
“We are fully complying with all sanctions.
“In response to recent events, we are beginning the process to discontinue operations and developing steps to exit the Sakhalin-1 venture.
“Given the current situation, ExxonMobil will not invest in new developments in Russia.”
According to Reuters correspondent Sabrina Valle, ExxonMobil will leave behind $4 billion in assets and 220,000 barrels of oil in Russia.
It comes as Brent Crude the international benchmark for oil prices reaches $110 a barrel.
At the same time, the price of US oil – West Texas Intermediate – climbed to almost $109 a barrel.
Russia is one of the biggest oil producers in the world.
Therefore, the conflict with Ukraine and the withdrawal of market leaders such as ExxonMobil has sparked fears that supplies could be affected.
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Petrol prices in the UK are mainly determined by the price of crude oil.
Although Britain imports much of its oil from the USA rather than Russia the global price in US dollars impacts the price for consumers.
This is because oil is traded in dollars.
On Monday the RAC announced that petrol was now a record £1.51 a litre on Sunday while Diesel was £1.55 a litre
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