US gas prices could increase this winter, according to Janet Yellen, if oil prices rise when Europe stops importing Russian crude.
- There is a chance that US gas prices at the pump could increase once more in the winter, Janet Yellen warned.
- The US Treasury chief warned that an embargo on Russian oil transported by sea by the EU might push up the price of crude.
- Since reaching a peak above $5 in June, the average gas price in the US has slowly decreased.
Reuters: On September 11, the U.S. The European Union may considerably reduce its purchases of Russian oil in the coming winter, according to Treasury Secretary Janet Yellen, who also noted that a proposed Western price ceiling on Russia’s oil exports is intended to keep prices in check.
According to Yellen
“it’s a risk, and it’s a risk that we’re working on the price cap to try to manage.”
The EU “will discontinue for the most part buying Russian oil” and put a restriction on services that permit Russia to move oil by tanker, Yellen said, which might result in a price increase.
Price cap agreement
According to the price cap agreement reached by the G7 affluent nations, participating states are required to refuse insurance, financing, brokerage, navigation, and other services to oil cargoes with prices that are higher than a yet-to-be-determined price ceiling on crude and oil products.
Yellen claimed that the price cap is intended to keep Russian oil supply intact while reducing the amount of money that Russia could use to wage war in the Ukraine.
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