Bloomberg/Joe Carroll/7-1-2022
“Global oil prices could reach a “stratospheric” $380 a barrel if US and European penalties prompt Russia to inflict retaliatory crude-output cuts, JPMorgan Chase & Co. analysts warned.”
USAGOLD note: With no end in sight to the war in Ukraine, forecasts like this one from JP Morgan do not seem completely off the wall, particularly when it says Russia could reduce daily production “by 5 million barrels without excessively damaging the economy.” The current price is just over $110 per barrel and up 45% over the past 12 months. Oil plays a role in the pricing of just about everything. If JPM’s scenario become the reality, it could wreak havoc on the global economy.
Chart courtesy of TradingEconomics.com
