Janet Yellen warns US gas prices could spike this winter as oil soars once Europe stops buying Russian crude

As a partial European ban on Russian crude imports takes hold, there's a chance US gas prices will go up again.

Since hitting a record in June, the average price of gas in the US has fallen steadily, providing some much-needed relief. If crude prices go up, American drivers will feel the impact.

She was asked if gas prices could go up again in 2022.

The European Union will stop buying Russian oil this winter. Services that allow Russia to ship oil by tanker will be banned. That could cause oil prices to go up.

The EU will stop buying Russian crude on December 5, fulfilling a pledge it made when it agreed on a sixth sanctions package against Moscow.

As global supply tightens, the embargo will push up oil prices, which will push up US gas prices.

The fall in oil prices has led to a drop in pump prices in the US. The national average price of gas has fallen for 11 weeks in a row from a high of $5 a gallon in June to $3.72 on Monday.

Concerns about the hit to demand from a recession and continued COVID-19 curbs in China have weighed on the price of oil.

The US wants to put a limit on the price of Russian oil.

She said that the price cap proposal was designed to both lower Russian revenues that they use to support their economy and fight this illegal war, as well as maintaining Russian oil supplies that will help to hold down global oil prices.

It's something that we're trying to put in place to avoid a future spike in oil prices.

The G7, which includes Canada, France, Germany, Italy, Japan, the UK, and the US, agreed to back the proposal earlier in September in order to implement a Russian crude price cap by December 5.

The plan calls for countries to make companies refuse to provide services to shipments or Russian oil and oil products that are above a set limit. The level of the cap has not been decided.

Goldman Sachs strategists warn that a price cap for oil will likely be bearish in theory and bullish in practice, with Moscow likely to retaliate.

At last check Monday, the key oil price benchmarks remained broadly unchanged, with the price of oil at just under $92 a barrel and the price of oil at $88 a barrel.

Despite the G7's cap on Russian crude, oil prices will surge to $125 a barrel next year, according to Goldman.