JP Morgan Predicts Global Prices Could Reach $380 A Barrel If Russia Cuts Oil Exports

Bloomberg: JPMorgan Sees ‘Stratospheric’ $380 Oil on Worst-Case Russian Cut 

(Bloomberg) -- 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 & Co. analysts warned. 

The Group of Seven nations are hammering out a complicated mechanism to cap the price fetched by Russian oil in a bid to tighten the screws on Vladimir Putin’s war machine in Ukraine. 

But given Moscow’s robust fiscal position, the nation can afford to slash daily crude production by 5 million barrels without excessively damaging the 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 to $190, while the worst-case scenario of 5 million could mean “stratospheric” $380 crude, the analysts wrote.  

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Update: JPMorgan sees ‘stratospheric’ $380 oil on worst-case Russian cut (Economic Times)  

WNU Editor: JP Morgan is not the only bank projecting these sky-high oil prices on what would happen if Russian cuts its oil exports .... Oil price surge: Expert warns oil could hit $200 after 'recipe for disaster' G7 plan (Express).