Oil price could rise in winter, says Yellen

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US Treasury Secretary Janet Yellen holds a press conference in the US Treasury Department’s Cash Room in Washington, July 28, 2022, US. REUTERS/Jonathan Ernst/File Photo

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WASHINGTON, Sept. 11 (Reuters) – US Treasury Secretary Janet Yellen said on Sunday that Americans could experience a winter spike in gas prices when the European Union cuts significantly from buying Russian oil, adding that a proposed Western price cap on Russian oil exports is being designed to keep prices in check.

“It’s a risk, and it’s a risk that we’re trying to address at the price cap,” Yellen told CNN.

The possible price hike could come as the EU “will stop buying Russian oil for the most part” and ban services that allow Russia to transport oil by tanker, she said.

The plan for a price cap agreed by the rich countries of the G7 calls on participating countries to refuse insurance, finance, brokering, navigation and other services for oil shipments that are more expensive than an undisclosed price cap for crude oil and oil products.

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

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Reporting by Katharine Jackson Editing by Bill Berkrot

Our standards: The Thomson Reuters Trust Principles.

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