Crude oil prices could reach the “stratosphere” of $ 380 per barrel if Western sanctions lead to retaliatory production cuts in Russia. Analysts at JPMorgan Chase warned.
The seven major countries (G7) are considering ways to cap the price of Russian crude oil in order to reduce the flow of income that the Putin administration will use to cover the war costs of the invasion of Ukraine. However, given Russia’s strong financial situation, JP Morgan analysts, including Natasha Kaneva, said it would be possible to reduce production by 5 million barrels a day without unduely damaging its economy. Pointed out in the report.
This can have disastrous consequences for many other countries and regions of the world. Analysts say North Sea Brent crude could reach $ 190 if supply is reduced by 3 million barrels a day, and $ 380 in the “stratosphere” in the worst-case scenario of a 5 million barrel reduction. analysis. “It is possible that the Russian government will retaliate for production cuts as a means of distressing Western nations,” he said.
Original title:JPMorgan Sees’Stratospheric’ $ 380 Oil on Worst-Case Russian Cut (excerpt)
