Sanctions on Russia might increase oil prices to 380 dollars

Crude petroleum. Barrels with the words oil. Symbols of increasing the cost of hydrocarbons. Concept - stocks of oil companies are growing. 3d rendering

If Russia reduces oil production in response to the sanctions imposed by the United States and Europe, the world crude oil prices might reach 380 dollars a barrel, JPMorgan warned.

Analysts from the US firm recalled that the G7 promised to implement a mechanism to limit Russian oil prices. However, in response, Moscow might reduce daily oil extraction by five million barrels without excessively damaging its economy.

A three-million-barrel cut in daily supply would drive London’s benchmark crude oil prices to 190 dollars, while the worst-case scenario of five million barrels would mean a stratospheric increase to 380 dollars in oil prices, which would be disastrous for exporting countries, it was hinted.

The most obvious and likely risk of a cap on the amounts is that Russia decides not to participate and reduce exports, the JPMorgan experts said.

However, Russian Presidential Spokesman Dmitry Peskov assured that the country will not sell anything without profit, as demand may fall in one place and rise in another, and supply chains are reoriented as the parties seek the best conditions for trade.