Home Tools Here is what could send the price of oil to $380 /...

Here is what could send the price of oil to $380 / barrel – JP Morgan on Russia revenge

31
0


JP Morgan analysts outline potential retaliation by Russia if the G7 manage to put together a mechanism to cap the price of Russian oil:

  • “The most obvious and likely risk with a price cap is that Russia might
    choose not to participate and instead retaliate by reducing exports.”
  • “It is likely that the government could retaliate by
    cutting output as a way to inflict pain on the West. The tightness of
    the global oil market is on Russia’s side.”

Price impact:

  • A 3 million-barrel output cut to daily supplies would push benchmark London
    crude prices to $190
  • Worst-case scenario of 5 million could
    mean “stratospheric” $380 crude

Info comes via Bloomberg (gated)

In the wake of the SPR release, from the US and some Asian countries

Previous articleDXY Global Cycle Trend to End at 106.58
Next articleLong EUR/GBP – Interest Rate Differentials and Market Pricing: Top Trading Opportunities