Mrs. Yellen, Secretary of the United States Treasury, recently warned Americans that US gas prices could increase again this winter. She said there is a risk on the price cap they are working on to address the price issue. She added that they are trying to figure out such a price cap proposal that can lower both revenues of the Russian government and balance out the Russian oil supplies, which can help them to keep global oil prices low.
US treasury secretary over oil gas prices
In a recent interview on CNN channel, Mr. Yellen talked a lot, mainly about the conditions of the US economy, the country’s inflation, current gas prices, and other essential topics. When she was asked by the interviewer whether US residents should worry about the increment in gas prices again, she clarified that they are presently working on a price cap to try to address the issue.
Talking about the price cap proposal, she said that they are looking to design it in such a way that it not only lowers the Russian government revenues but also maintains the supply of Russian oil, which will help them keep global oil prices low. This statement indicates that the US government is trying to restrain the Russian government from earning much from their oil business.
The EU also has imposed a sanction package on Russia this year which will ban seaborne imports of Russian crude oil and other petroleum products till Feb 5, 2023. This also banned any European Union company from providing shipping insurance or service to Russia for transporting oil to other foreign countries.
Changes in Oil Price
While talking about the Russian oil supply, she said that the ban could increase gas prices in the US. As per the reports, the average oil gas price in the US has fallen at a good rate since June. However, the US treasury department is estimating that the ban on the Russian oil supply would take around 5 million oil barrels every single day off the market, which would trigger a price hike.
What are your thoughts on Mr. Yellen’s statements about the US gas prices and the economy? Do you think they can avoid oil and gas price hikes this winter? Let us know in the comments below. And, if you found our content informative, then do share it with your family and friends.
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