Energy Experts Demolish Another One Of Biden’s Hare-Brained Schemes
(TruthandLiberty.com) – After the Kremlin invaded Ukraine five months ago, the United States moved to ban oil from Russia. Between the war and the bans, the supply and demand equation for fuel is out of whack. Demand has not dropped, but prices have increased on lower supplies. Still, the Biden administration is floating the idea of capping Russian oil prices. On Monday, July 18, Gal Luft of the Institute for the Analysis of Global Security (IAGS) told CNBC if the administration follows through on the “ridiculous” idea, it would be disastrous for America.
The Biden administration says it’s trying to lower the cost of gas for consumers while also limiting money to Russia’s war chest. Luft warned that capping Russian oil would likely backfire on the United States and other G7 countries. The head of the Washington think tank said the US could not demand sellers accept prices for less than what they are worth and that it can’t force costs down by sheer will.
A number of governments are pushing to put a cap on the price of oil that Russia sells to them in order to punish it for the Ukrainian invasion. https://t.co/YLSvLQLEdC
— Forbes (@Forbes) July 19, 2022
Luft said what’s most likely to occur is that Russia will cut back its production and create a further global energy shortage. Instead of prices at $100 per barrel of oil, a Russia cutback could cause it to spike to $140 per barrel. He said it’s impossible to trick supply and demand. Then, there’s China and India — which may not entertain capping Russia’s oil alongside G7 countries.
So, who would the Biden administration really hurt, Russia or US consumers?
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