The European Union plans to stop buying Russian oil in December due to the war in Ukraine, which could cause gas prices to go up again this winter.
The press conference was held at the Treasury.
The E.U. hopes to cut off Russian oil tanker shipments to Europe and ban companies from insuring Russian ships that carry oil to other regions like Asia, which could lead to a spike in oil prices.
The threat of rising oil prices is something the Fed is working on, and a proposed cap on the sale price of Russian oil would help contain costs in the U.S., which have finally fallen after spiking earlier this year.
The price cap would help slash the revenue that Russia earns from oil, which the country uses to fight this illegal war in Ukraine, while still allowing Russianpetroleum to enter the global oil market.
Russian oil only made up a small portion of U.S. imports, despite the United States banning Russian oil and gas earlier this year.
The average price for a gallon of gas in the US fell to below $3.75 on Saturday, the lowest since March 2, when Russia invaded Ukraine. Since the beginning of the war, gasoline and oil prices have begun to come down as the violence in the Middle East has caused a shortage of crude oil. The national average price in March was the highest ever in the United States. Russia sold less oil to the west in response to sanctions. Russia threatened to shut off the Nord Stream 1 natural gas line to Europe if the European Union instituted a price cap. Finance ministers from the G7 agreed to a price cap on Russian crude oil earlier this month, but are still trying to get other countries on board. An official from the White House told CNBC that the price cap will be in place before the year 2023.
Gas prices are close to $3 a gallon in some places.
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