Yellen says price cap on Russian oil is ‘one of our most powerful tools’ to address inflation

A cap on Russian oil prices will be important to bring down inflation in the U.S.

Speaking before the start of the Group of 20 finance ministers and central bank governors meeting in Indonesia, she said that efforts must be made to rein in the effects of the Russia-Ukraine crisis on the US economy.

She said that high energy costs contributed to the increase in US inflation.

The effects of the Russia-Ukraine war are being felt in every corner of the world.

A price cap on Russian oil is one of our most powerful tools to address the pain that Americans and families across the world are feeling at the gas pump and the grocery store right now.

She said the U.S. will talk to other countries to see what can be done to help other countries. The design and implementation of a price cap on Russian oil is one of the topics addressed.

A price cap on Russian oil is one of the most powerful ways to address the pain that Americans and families across the world are feeling at the gas pump. Putin's war machine will be denied revenue if the price of Russian oil is limited.

The price of oil has gone up as the US and European countries ban Russian oil. The price of crude oil went up after the Russia-Ukraine war began.

Economists warn that the price of a barrel could go as high as $175.

Shell’s Vito Offshore Oil Platform docked at Kiewit Offshore Services while under construction onshore in Ingleside, Texas, U.S., on Wednesday, April 6, 2022.

The price cap mechanism involved the U.S. and other countries forming a group to buy Russian oil at a low enough price to keep Russian oil production profitable and supply forthcoming but at the same time starve Russia of being able to fund its war inUkraine.

The historic sanctions we have already implemented will make it more difficult for him to wage his war.

Russia has not commented on the proposal while other countries have not.

The price cap will be attractive to many Russian oil companies as it will reduce the high costs of import due to insurance and financial ban on Russian oil deliveries.

The EU banned the insuring of ships that transport Russian oil.

China and India are important buyers of Russian oil and observing a price cap would serve their own interests in lowering the price that they pay for Russian oil.

Many countries that import Russian oil will be affected by the insurance and financial services ban that the EU, the UK and the U.S. will put into effect.

Without the price cap, the Treasury Secretary said, we would likely see very much higher global prices because that ban would result in a shut in for Russian oil.