G7 economic powers agreed last week to explore imposing a ban on transporting Russian oil that has been sold above a certain price


Brent prices could soar to a “stratospheric” $380 a barrel in “the most extreme scenario” of Russia slashing oil production by 5 million barrels per day (bpd) in retaliation to a price cap being considered by the Group of Seven, analysts at JP Morgan said in a note dated July 1.
G7 economic powers agreed last week to explore imposing a ban on transporting Russian oil that has been sold above a certain price, aiming to limit Moscow’s ability to fund its invasion of Ukraine, which Moscow describes as a “special operation”.
“A $50-60 per barrel price cap would likely serve the G7 goals of reducing oil revenues for Russia while assuring barrels continue to flow,” the bank said.
“The most obvious and likely risk” is Russia not cooperating and retaliating by reducing exports of oil, it said, adding that Moscow can cut output by up to 5m bpd “without excessively hurting its economic interes
“Given the high level of stress in the oil market, a cut of 3m bpd could cause global Brent price to jump to $190/bbl, while the worst-case scenario, a 5m bpd cut could drive oil price to a stratospheric $380/bbl,” JP Morgan said.
Russian Deputy Prime Minister Alexander Novak said last week that attempts to limit the price of Russian oil could lead to imbalance in the market and push prices higher.
JP Morgan also saw alternative scenarios where China and India do not cooperate with G7 on the price cap, or where Russia fully re-routes exports from the west to the east but loses pricing power.
SOURCE: REUTERS
South African Air Chief calls on CJCSC, discusses defence ties, regional issues
- 13 hours ago

Helmets mandatory for both bike riders in Islamabad
- 17 hours ago

PM leaves for Azerbaijan to attend ECO summit
- 13 hours ago

Famous Portuguese footballer dies in traffic accident
- 14 hours ago
Russia loses top Russian navy general killed in Ukraine
- 8 hours ago

Death anniversary of folk singer Alam Lohar observed
- 9 hours ago
Pakistan beat Japan to storm into Asian netball final
- 14 hours ago
Seven people missing from massive explosion at California fireworks facility
- 14 hours ago

Asian Junior Squash Championship: 5 Pakistani players qualify for semi-finals
- 17 hours ago
Gold price soars Rs800 per tola in Pakistan
- 11 hours ago
Pakistan's first int'l gold medallist Din Mohammad passes away
- 8 hours ago

Disqualification reference filed against 26 opposition Punjab MPAs
- 9 hours ago