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Bank of America warns: Oil could rise to $200 if Russian oil is cut

2022-03-07T09:14:54.970Z


The Russian-Ukrainian war continues to heat up, and Western sanctions against Russia are also increasing. Following the earlier removal of some Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the U.S. and Europe are reportedly considering a ban on imports of Russian oil products.


The Russian-Ukrainian war continues to heat up, and Western sanctions against Russia are also increasing.

Following the earlier removal of some Russian banks from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the United States and Europe are reportedly looking into the possibility of banning imports of Russian oil products in a further crackdown on Russian military operations.

Stimulated by the news, international oil prices jumped again today, once hitting a 13-year high, even if the White House announced earlier that it would release a total of 60 million barrels of oil reserves with its allies.

Some major banks have warned that cutting off Russian oil means a gap of about 5 million barrels per day, which will have a huge impact on global markets, and oil prices may rise to $200 a barrel by then.


On March 7, local time, the U.S. crude oil benchmark West Texas Intermediate (WTI Crude) rose by more than 10% after the market opened. The price per barrel is currently hovering at the level of 124 to 126 US dollars. The U.S. dollar hit its highest level since July 2008.

International benchmark Brent crude oil prices also rose, reaching as high as $139.13 a barrel, also the highest since July 2008.

Blinken said he is actively discussing with allies to ban Russian oil and gas imports.

(Getty Images)

The United States and its European allies are considering banning Russian oil and gas imports, Secretary of State Antony Blinken told CNN on Sunday.

He said the Russian invasion of Ukraine was an act of invasion and must be punished further.

Meanwhile, U.S. House of Representatives Speaker Nancy Pelosi said the House of Representatives is also exploring legislation to further isolate Russia from the global economy.

Before the outbreak of the Russia-Ukraine conflict, Russia’s crude oil and refined oil exports were on average 4.7 million barrels per day and 2.8 million barrels per day, while the U.S. imports of crude oil and refined oil from Russia in 2021 averaged 670,000 barrels per day.

The U.S. Energy Information Publishing Group estimates that the current Russian crude oil and refined oil exports are affected by an average of 1.5 million barrels and 1 million barrels per day, respectively.

Bank of America chief economist Ethan Harris warned earlier that if most of Russia's oil exports were cut off, even with the release of strategic reserves and an offsetting increase in exports from the Organization of the Petroleum Exporting Countries (OPEC), there could still be 5 million per day barrels or larger of oil gaps.

That means oil prices could double from $100 a barrel to $200 a barrel.

For details, please read the 307th issue of "Hong Kong 01" Electronic Weekly Newsletter (March 7, 2022) "The

US fails to increase the supply policy and the oil price may exceed $147

".

Click here

to try out the weekly e-newsletter for more in-depth reports.

Source: hk1

All news articles on 2022-03-07

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