US Gas Price may hike in winter as Europe cuts off Russian Oil
US Gas price may hike in winters as per latest statement from US Treasury Chief, Janet Yellen.
Janet Yellen appeared on CNN’s State of Union and stated Americans might face hike in gas prices as European Union completely shuts off buying oil from Russia. She further added “It’s a risk, and it’s a risk that we’re working on the price cap to try to address”.
US is facing all time high inflation in the last 40 years, and the gas price was fallen a bit after hitting a all time high during summers in June, 2022. But the US citizens again have to face gas price hike as the EU would kick in sanctions on Russian government.
This price hike may hit the Russian revenues, which they are earning by selling the oil. According to Yellen, Russians are able to sell their petrol in the global market which is helping them to fund war against Ukraine.
The US government has banned Russian oil and gas and also prohibited its citizens to invest in any kind of Russian energy sector, earlier this year.
The average gas price in US is recorded below 3.75$ last week. This is the lowest price recorded ever since the inception of Russia – Ukraine war from 2nd March. The gas price were touching the sky since the war which was recorded to be around 4.33$ during the war times.
The EU is set to seize all seaborne imports of Russian crude on December 5, fulfilling a pledge its members made when agreeing a sixth sanctions package against Russia in June.
Earlier this month the G7 including Canada, France, Germany, Italy, Japan, the UK, and the US has agreed to put a price cap on Russian petroleum and gas products. But they are also trying to convince other countries and get them on board as well.
Russia is the largest producer of oil, followed by US. Russia has threatened to shut off its Nord Stream 1 pipeline to Europe, if EU continues on threatening Russia on putting a price cap of Russian petroleum and gas products.