The G7 nations have imposed a price cap on Russian oil exports to curb the country’s revenue from its energy exports that fund its war on Ukraine. Moreover, the European Union’s embargo on Russian oil is expected to come into effect in December. U.S. Treasury Secretary Janet Yellen has warned that this could spike energy prices in winter.
Oil prices could be due for a rebound soon. The Biden administration is considering a plan to refill the Strategic Petroleum Reserve if oil falls to around $80 per barrel to protect crude prices from dropping further.
