JPMorgan Chase predicted oil prices to rise to $380 per barrel if Russia significantly reduces exports

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Analysts at JPMorgan Chase & Co predict that the price of a barrel “could fly into the stratosphere” if Russia, under pressure from sanctions, decides to cut production and exports.

The authors of the forecast refers Bloomberg, do not rule out that Russia, in an attempt to limit its oil revenues, may sharply reduce supplies. For the world economy, they believe, the consequences of this could be catastrophic.

If Russia reduces production by 3 million barrels per day, according to JPMorgan Chase & Co, then oil prices on the ICE exchange in London will rise to $190.

Under the worst-case scenario, according to JPMorgan Chase, Russia could reduce daily production by 5 million barrels without causing significant damage to its economy. The withdrawal from the market of such a volume of oil will lead to an increase in prices for it up to $380.

A scenario in which Russia will cut exports “to annoy the West” is considered “very likely” by the authors of the forecast.

As of July 2, 15:00 Moscow time, North Sea Brent on the ICE exchange in London it cost $111 per barrel, American WTI – $108 per barrel.

At the end of June, the G-7 summit discussed options for reducing Russian oil revenues in order to reduce Russia’s financial capacity to wage war.

Russian Deputy Prime Minister Alexander Novak at the end of June informedthat Russia produces an average of 9.9 million barrels of oil per day. In February, according to him, production amounted to 10.2 million barrels per day, and in the near future the Russian Federation is going to fully select its quota under an agreement with OPEC and produce 11 million barrels per day.

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Source: meduza.io

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