Global oil prices could reach $ 380 a barrel if US and European sanctions cause Russia to cut oil production, JP Morgan analysts have warned.
According to a report in Bloomberg, the G7 group, an international economic organization that includes the United States, Canada, Japan, Germany, France, Italy and the United Kingdom, is trying to set up a mechanism to limit the price of oil in order to further isolate the Russian economy. The West.
"It is likely that the Russian government will respond by cutting output in order to harm the West. The tightening of the global oil market is benefiting Russia," the bank said in a statement.
Will production be reduced?
But given Russia's relatively strong fiscal position, meanwhile Moscow can afford to reduce daily oil production by 5 million barrels without significantly hurting the economy, JP Morgan analysts are convinced.
For other countries, however, the results could be "disastrous": a reduction of 3 million barrels in daily supply would push London crude oil prices to $ 190 a barrel, and in the event of a $ 5 million cut, the price could skyrocket to $ 380 a barrel.
It's just that yesterday, Brent crude rose more than 2% to about $ 111.5 a barrel, very far from the bank's horrors.
A jump in inflation
High oil prices have a decisive effect on the level of inflation in the world.
In Europe, for example, inflation data were published over the weekend, which recorded a sharper-than-expected rise: 8.6% in the past year compared with 8.4% in June.
The main reason for the jump - the war in Ukraine, which boosted energy costs, electricity tariffs, fuel prices and more.
The data support the estimate that the European Central Bank (ECB) will act more aggressively against inflation in the eurozone and raise the interest rate in July by 0.5% and not by 0.25% as announced during the previous month.
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