Wangye said financial news: What will happen to the international oil price next?
In response, Wall Street investment bank JPMorgan Chase warned that if Western countries such as Europe and the United States "go too far" and prompt Russia to implement retaliatory production cuts, global oil prices may soar to US$380 per barrel.
"The most obvious and likely risk from Europe and the United States imposing price caps on Russian oil is that Russia may choose not to participate and instead retaliate by reducing exports," JPMorgan Chase further explained.
In addition, JPMorgan Chase also said that Russia is likely to retaliate by cutting production to cause pain to the West. And the tension in the global oil market is on Russia's side.
In addition, in late June, the United States announced plans to impose an insurance embargo on ships transporting Russian oil as part of its efforts to restrict Russia in the conflicts between Russia and Ukraine.
It is worth mentioning that earlier, the Group of Seven (G7) agreed to explore the policy of imposing a price ceiling on Russian oil as a way to limit Russia's ability to generate revenue from oil export sales.
Of course, as Wangye said before, this idea was first proposed by US Treasury Secretary Janet Yellen, and was later adopted by the G7. The G7 is currently considering an embargo on Russian seaborne crude oil unless its purchase price is low. at or below the price agreed with international partners.
Finally, JPMorgan experts noted that given Russia's strong fiscal position, Russia, affected by the restrictions, could cut crude oil production by as much as 5 million barrels per day without unduly damaging the economy.
What do you think about this? What do you think will happen to international oil prices next?
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