JP Morgan Chase, a leading U.S. investment bank, predicted that Brent Crude prices would soar to $185 a barrel in the event of a setback in the supply of Russian crude oil.
So far, Brent Crude, a benchmark for international oil prices, reached an all-time high of $147 a barrel during the 2008 global financial crisis. It can go beyond this.
JP Morgan estimated in a report on the 3rd (local time) that “Currently, 66% of Russian crude oil is having difficulty finding buyers.” Sales in the market are not smooth due to concerns that they may be subject to sanctions in the future.
The U.S. and Europe have yet to impose direct sanctions on Russian crude oil, while imposing strong financial sanctions such as Russia’s expulsion of Swift.
This is because imposing sanctions on Russian crude oil could lead to instability in supply and demand of crude oil, further worsening already severe inflation. The United States is experiencing the highest inflation in 40 years and Europe in 20 years.
However, as Russia has not stopped its offensive with Daewoo Kra, chances are growing that it will eventually impose sanctions on crude oil. In this case, oil prices can reach $185 a barrel.
JP Morgan also predicted that expectations for Iran’s nuclear negotiations are rising, but Iranian crude oil will not be supplied to the market immediately, and that oil prices will soar if the West imposes sanctions on Russian crude oil.
Meanwhile, Brent crude oil closed at $110.46 a barrel, down 2.2% from the previous trading day. However, at the beginning of the market, it rose to $119.84 per barrel, the highest level since May 2012, surpassing the $120 mark.
