Both the U.S. government and the G7 are considering polices to simultaneously address high oil prices and inflation as well as Russia’s control over energy markets. However, the proposed U.S. crude oil export ban would do little reduce inflation, and instead could have the opposite effect of actually increasing U.S. gasoline prices. The effects of the G7 price cap, alternatively, would depend on a few key actors, namely Russia, China, and India. Ultimately, prices levels may eventually decrease not due to government intervention but rather because of growing fears of an economic downturn.
