If the country wants to avoid oil crises like the one being experienced now due to the Russian-Ukraine war, households need to consider how much oil they consume and implement ways to reduce their dependence, a top economic adviser to President Joe Biden tells Yahoo Finance Live.
"This crisis should underscore the only way to reduce our dependence on oil is to use less oil," White House director of the National Economic Council Brian Deese said. "The good news is the market is moving aggressively in that direction. We have all the major auto companies saying they are moving to an electric vehicle future. We as an administration are doubling down on the ability to build those vehicles here, and create more jobs here at home. So if this crisis is going to teach us anything, it's that over the long-term the only real energy security comes from reducing our economy's dependence on oil and other fossil fuels."
Deese's comments come as oil and gas prices skyrocket in the United States as the war rages on, raising the risk of a sharp economic slowdown this year.
Brent crude oil prices traded around $122 a barrel on Wednesday as traders digested the Biden administration's ban of imports of Russian oil, liquefied natural gas and coal in response to the country's war on Ukraine.
Oil prices have surged roughly 29% since Russia's invasion of Ukraine as the U.S. and its allies have slapped the country with debilitating sanctions.
Prices at the pump have skyrocketed above $4 a gallon on average, notes AAA.
In a new research note this week, RBS Capital Markets energy strategist Michael Tran hinted oil prices could surge to $200 a barrel and then crash to $50 a barrel as the economy slows sharply.
Tran said on Yahoo Finance Live $6 a gallon gas isn't out of the realm of possibilities.
"Putin's price hikes are having an impact, and are going to have an impact. As the president has said, we are going to do everything we can to mitigate it. But there are costs to Putin's completely unjustified aggression in Ukraine," Deese added.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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