Brent Crude prices could jump to well above $150 per barrel if Russia’s oil exports fall off a cliff in the coming months, according to Bank of America.
“With our $120/bbl Brent target now in sight, we believe that a sharp contraction in Russian oil exports could .... push Brent well past $150/bbl,” analysts at Bank of America (BofA) Global Research wrote in a research note on Friday carried by Reuters.
There is a distinct possibility of a sharp drop in Russian oil exports as the EU continues to seek consensus and persuade Hungary to drop its opposition to a Russian oil embargo. Reports have it that some EU member states are inclined to accept a temporary exemption of Russian pipeline supply to central Europe via the Druzhba pipeline from the embargo as a bargaining chip to convince Hungary to agree to a ban on imports of Russian seaborne oil.
So far, Russian exports have held up, but as of May 15, the major international trading houses had to halt all transactions with state-controlled Rosneft, Gazprom Neft, and Transneft, the agency noted.
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