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| If production is cut by 5 million barrels per day, the price of crude oil in the world market will reach 80 380 per barrel. (Photo: getty images) |
Analysts at US investment bank JPMorgan have warned that if Russia cuts crude production in retaliation for US and European sanctions, global oil prices could reach 80 380 a barrel.
After Russia's invasion of Ukraine, the United States and its Western allies have imposed a number of sanctions on Russia and developed a complex formula for capping Russia's oil prices.
According to Bloomberg, JPMorgan analyst Natasha Kineva writes that Russia is currently in a strong financial position and can withstand a shortfall of 500,000 barrels per day in oil production.
A possible drop in crude oil prices could be catastrophic for the world.
According to him, a 3 million barrel reduction in production will push London crude oil prices to 190 per barrel.
If production is cut by 5 million barrels per day, the price of crude oil in the world market will reach 80 380 per barrel.
The most obvious and potential threat to the price cap could be a reduction in energy exports in retaliation by Russia, which could be aimed at causing financial damage to the West, analysts wrote.
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