JP Morgan analysts outline potential retaliation by Russia if the G7 manage to put together a mechanism to cap the price of Russian oil:
- “The most obvious and likely risk with a price cap is that Russia might
choose not to participate and instead retaliate by reducing exports.” - “It is likely that the government could retaliate by
cutting output as a way to inflict pain on the West. The tightness of
the global oil market is on Russia’s side.”
Price impact:
- A 3 million-barrel output cut to daily supplies would push benchmark London
crude prices to $190 - Worst-case scenario of 5 million could
mean “stratospheric” $380 crude
Info comes via Bloomberg (gated)
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