Posted on 07/02/2022 6:27:52 AM PDT by JonPreston
Global oil prices could reach a “stratospheric” $380 a barrel if US and European penalties prompt Russia to inflict retaliatory crude output cuts, JPMorgan Chase analysts warned.
The Group of Seven leading industrial nations are working out a complicated mechanism to cap the price fetched by Russian oil in an attempt to tighten the screws on President Vladimir Putin amid Russia's invasion of Ukraine.
But Moscow can afford to reduce daily crude production by 5 million barrels without excessively damaging the Russian economy, JPMorgan analysts including Natasha Kaneva wrote in a note to clients.
For much of the rest of the world, however, the results could be disastrous.
A 3 million barrel cut to daily supplies would push benchmark London crude prices that are now around $111 to $190, while the worst-case scenario of 5 million could mean “stratospheric” $380 crude, the analysts wrote.
“The most obvious and likely risk with a price cap is that Russia might choose not to participate and instead retaliate by reducing exports,” the analysts wrote.
“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.”
(Excerpt) Read more at msn.com ...
Seems absurd, oil is cheap, plentiful and all over the place. Just up to the few to decide the price.
Seems absurd, oil is cheap, plentiful and all over the place. Just up to the few to decide the price.
We are being robbed. The end.
Sometimes the i-banks like to put a huge price target out there to draw in a few sucker buyers before they sell the whole energy complex. If we are going into a recession, the oil price is not going to be at 380, it’s going to be in the low 70s.
The elites are sticking to the folks who don’t live in the urban hell holes.
Same as around 2006-2008, it’s a huge sham. Oil/gas prices are the most anti-supply/demand market there is.
$380 a barrel around election time ? LOL
...........this is a crock! Nobody’s economy would sustain for long 380 dollars per barrel. That would translate into 20 dollars a gallon of gasoline or diesel!
J.P. Morgan is trying, by embellishment to an absurd degree, to SCARE the American people for reasons known only to J.P. Morgan execs.
If we’re going into a recession it won’t matter much to middle class America if it’s $380 or $70 a bbl, it will be out of reach at either price point. It will matter to the global economy. It will cease to exist for all but the oil independent.
DeBeers
The MAGA hat wearing, Ford F150 set.
You really don’t know very much about anything, do you. It’s always the most dire possible scenario in any direction for you.
Let’s go Brandon!
Hush, Neocon. The last time you were right about politics/foreign was..well...never.
They probably own a bunch of Russian debt.
This is only acceptable if it gets rid of 9 out of 10 politicians repuke and rat alike
Recession, hell. You mean a Depression.
That's what I'm telling my Liberal siblings when we get together next month.
You hit the nail on the head!!! See link below:
https://www.reuters.com › business › finance › jpmorgans-dimon-warns-potential-1-bln-loss-russia-exposure-2022-04-04
JPMorgan’s Dimon warns of possible $1 billion Russia loss
Apr 4, 2022NEW YORK, April 4 (Reuters) - JPMorgan (JPM.N) could lose about $1 billion on its Russia exposure, Chief Executive Jamie Dimon said on Monday, detailing the extent of the bank’s potential losses...
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