Russia-Ukraine: Oil eyes $120/barrel with analysts saying it could hit $185
Oil has $120/barrel price in its sights, the highest in nearly a decade, as sanctions on Russia disrupt oil sales
Can oil hit $185/barrel if the Russian-Ukraine isn’t resolved quickly? Well, the good folks at JP Morgan certainly believe so
Continuing hostilities between Russia and Ukraine pushed crude oil prices to a 10-year high of $119.84 per barrel on Thursday.
Crude oil prices have surged by nearly 20% in the last three days on fear of tight supplies and Wednesday, the Brent-indexed crude oil prices rose to over $111 per barrel. It had risen to $102 per barrel on Tuesday from Monday’s $98 per barrel mark.
At present, Russia is the third-largest producer of crude oil in the world and currently, 66% of Russian oil is struggling to find buyers. JP Morgan analysts however believe that the sanctions against Russia will worsen global supplies and stifle growth which may result in oil prices hitting stratospheric levels
“As sanctions have widened and the shift to energy security takes on an urgent priority, there will likely be ramifications for Russian oil sales into Europe and the US, potentially impacting up to 4.3 million barrels per day,” the analysts wrote.
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