Experts and officials are warning of the consequences of the G-7 countries’ decision to cap Russian oil prices in an attempt to cut Russia’s energy export earnings.
And JPMorgan warned that oil prices could rise to $380 a barrel if Russia decides to respond to Western attempts to set a price ceiling on Russian oil.
In a report released earlier, the US bank said that price restrictions could push Russia to cut oil production to 5 million barrels per day without causing serious damage to its economy.
“The worst-case scenario – a drop in production by 5 million barrels per day – could lead to an increase in oil prices to $ 380 per barrel,” JPMorgan analysts say.
Earlier in the day, the G7 finance ministers unanimously agreed to set a ceiling on the price of oil and gas supplies from Russia.
Kremlin spokesman Dmitry Peskov warned of the consequences of the G-7 imposing a ceiling on the price of a barrel of Russian oil and said the move would lead to significant market destabilization.
Yesterday, Russian Deputy Prime Minister Alexander Novak said that the countries of the OPEC+ group, as well as India and China, do not support the idea of setting a ceiling on the price of oil from Russia.
He dismissed the idea of capping the price of a barrel of Russian oil as absurd, warning that such a move would destroy the entire global oil market.