For JP Morgan, he warned this Saturday that prices per barrel could quadruple the current figures. The G7 seeks to limit the price of Russian oil but, given this, Putin could decide not to sell. From there, less supply, oil in circulation becomes more expensive.
JP Morgan maintains that Moscow can allow the country to reduce daily crude oil production by 5 million barrels without much trouble. This would not affect the Russian economy too much, but the same cannot be said for the rest of the world’s economies.
Experts say a 3 million barrel cut in daily supply would push benchmark London crude prices to $190, while the worst case scenario of 5 million could mean crude oil skyrocketing to $380.
What domino effect could the rise in crude oil generate: an increase in the price of fuel and in the price of transportation, petrochemical products such as insecticides, detergents, plastics, paints, various containers and textile fibers, and some special products such as certain lubricants, oil for cars and asphalt.
Source: Ambito
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