Oil prices could spike in winter, Yellen says

U.S. Treasury Secretary Janet Yellen holds a news conference in the U.S. Treasury Department’s Cash Room in Washington, 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 winter gas prices when the European Union drastically cuts its purchases of Russian oil, adding that a Western price cap proposal on Russian oil exports is designed to control prices.

“It’s a risk, and it’s a risk that we’re working on the price cap to try to deal with it,” Yellen told CNN.

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

The price cap plan agreed to by rich G7 countries calls on participating countries to deny insurance, financing, brokerage, shipping and other services to oil cargoes priced above a price cap yet to be determined on crude oil and petroleum products.

Yellen said the price cap was intended to reduce revenues that Russia could use to wage war in Ukraine while maintaining supplies of Russian oil to keep world prices low.

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Reporting by Katharine Jackson Editing by Bill Berkrot

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