Oil prices may rise in the winter, says Yellen

U.S. Treasury Secretary Janet Yellen holds a news conference in the Cash Room at the U.S. Treasury Department in Washington, U.S. July 28, 2022. REUTERS/Jonathan Ernst/File Photo

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WASHINGTON, Sept 11 (Reuters) – U.S. Treasury Secretary Janet Yellen said on Sunday that Americans could see a spike in gas prices this winter as the European Union cuts back significantly on buying Russian oil, adding that a proposed Western price cap on Russia’s oil exports is designed to to keep prices in check.

– It is a risk, and it is a risk that we are working with the price ceiling to try to address, Yellen told CNN.

The possible price increase could come because the EU “will mostly stop buying Russian oil” and impose a ban on services that allow Russia to transport oil by tanker, she said.

The price cap plan agreed to by G7 rich nations requires participating countries to deny insurance, finance, brokerage, navigation and other services to oil cargoes priced above a yet-to-be-determined price ceiling on crude oil and oil products.

Yellen said the price cap is aimed at lowering the revenue Russia can use to wage war in Ukraine while maintaining Russian oil supplies to keep global prices down.

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Reporting by Katharine Jackson Editing by Bill Berkrot

Our standards: Thomson Reuters Trust Principles.

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