Analysts consider this the worst case scenario
USA and Russia’s response to European sanctions could reduce crude oil production.
At this time, global oil prices will reach a fantastic level of 380 dollars per barrel.
JPMorgan Chase & Co., a New York-based holding company that provides investment and financial services warning it is reported.
“Bloomberg” writes that holding analysts warned.
He said that the “Group of Seven” countries are preparing a complex mechanism for the future by reducing the country’s income from oil in order to tighten the screws of Vladimir Putin’s war machine in Ukraine:
“Given Moscow’s strong fiscal position, the country is capable of reducing daily crude oil production by 5 million barrels without causing excessive damage to the economy.”
The consequences for the rest of the world could be catastrophic, the warning said.
Analysts write that a daily supply cut of 3 million barrels could push London crude oil prices to $190. In the worst case scenario, oil will rise to 380 dollars per barrel.
“The most obvious and likely risk to the price cap is that Russia chooses not to participate and instead retaliates by reducing exports,” the analysts wrote.
“Most likely, the government will cut production to hit the West. Currently, the density of the global oil market is on Russia’s side.
Western countries condemning this and USA imposed sanctions against Russia.
Russia and in response to Western countries gas reduced imports. Europe some of the countries gas is faced with a shortage. In the latest announced sanctions package Russia oil and gas are also mentioned.
This time, the Western countries also received oil and gas from Russia gas tries to reduce its imports.