Top American multinational bank JPMorgan & Chase has warned that oil prices are predicted triple and devastate the U.S. economy.
The price of a barrel of oil now hovers around $111 after already soaring.
However, the price could more than triple to a staggering $380 if Russia decides to cut its output, analysts at JP Morgan Chase are warning.
With the price of a gallon of gas in America now topping $5 in many areas, such a dramatic increase in oil costs would be catastrophic to the economy.
The West is putting the squeeze on Moscow over its war in Ukraine, but Russia, which supplies much of Europe with oil for heating and gasoline, could easily flip the script by cutting output.
Cutting production by 3 million barrels a day would push global prices to $190, and a worst-case scenario of a 5-million-per-day cut would send the price of a single barrel to $380, analyst Natasha Kaneva wrote.
The Group of Seven leading industrial nations is trying to hammer out a complex plan to cap the price Russia can fetch from oil sales to non-G-7 countries as part of a menu of sanctions aimed at Russia.
“The goal here is to starve Russia — starve Putin of his main source of cash and force down the price of Russian oil to help blunt the impact of Putin’s war at the pump,” a senior Biden administration official said.
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