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The price of oil may reach $380 per barrel if Russian supplies decrease

The price of oil could reach $380 per barrel if Russia significantly cuts oil production in response to Western sanctions, warn analysts from JP Morgan Chase, cited by Bloomberg and BNR.

If Russian oil supplies are cut by five million barrels per day, oil prices could soar into the stratosphere, warn analysts from one of the largest US banks, JP Morgan Chase.

This is the worst-case scenario for a potential Russian response to attempts to curb the country’s oil price.

The idea emerged at the meeting of the G7 leaders and aims to reduce the profits that Russia receives due to the high prices of black gold. In this way, the leaders hope to limit the financial flow with which Moscow finances its war in Ukraine.

“It is very likely that the government will respond to the imposition of a price ceiling by reducing supplies. The contracted oil market is on their side,” the experts’ analysis said.

According to them, a reduction in the daily supply of Russian oil by 3 million barrels per day will lead to an increase in fuel prices on the London Stock Exchange to 190 dollars per barrel.

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