(PatrioticPost.com)- After weeks of decline, U.S. Treasury Secretary Janet Yellen acknowledged that gas prices could spike again this winter. President Biden started using the nation’s strategic oil reserves, a crucial resource intended to power the U.S. military in the event of a catastrophic conflict, and prices have gradually dropped from record highs.
Yellen said on Sunday that there was a “risk” that prices would rise once more in the winter. She referred to the ongoing energy issues in Europe, where many continents are coping with rising costs and a supply shortage. Germany is one of the European Union members that has historically relied heavily on Russian energy supplies, most of which have been cut off due to EU sanctions against the Kremlin.
Yellen said during an appearance on CNN’s State of the Union on Sunday that “It’s a risk, and it’s a risk that we’re working on the price cap to try to address,”
Most of the European Union’s oil purchases from Russia will stop this winter and stop providing services that allow Russia to ship oil by tanker. That might lead to an increase in oil prices.
Yellen said her price cap plan is intended to diminish Russian revenues that they use to finance their economy and wage this unlawful war while maintaining the Russian oil supply to hold down global oil prices.
Gas prices have been progressively falling in recent months after rising over a national average of more than $5 per gallon this past June. According to AAA, the current national average for gas is $3.76 as of Monday. Prices are still higher than they were a year ago, when the national average was at $3.175, despite the reduction.
Under his administration, Joe Biden made the nation’s emergency oil reserves available for purchase to fight the rising prices. More than 200 million barrels have been sold to rivals in other countries, notably China.
Less than 450 million barrels are in the American strategic oil reserve, the lowest level since 1984.
Biden and other administration representatives have tried to take credit for recent drops in gas prices. But the administration blamed Vladimir Putin and the Ukraine conflict for the price increases that broke records in June. Gas prices and inflation issues were referred to as the “Putin Price Hike” by the Biden White House.
Even though the technical definition of a recession calls for two consecutive quarters of negative GDP growth, Janet Yellen insisted during her CNN appearance that the country was not currently experiencing one.
People will vote in November and give this administration a dose of reality.