Oil for $ 200? More than possible also thanks to the “price ceiling” of Draghi, word of the Swedish bank, too
According to the chief commodity analyst of the Swedish bank SEB Group, oil prices could rise above $ 200 a barrel if the G7 manages to limit the price of Russian crude.
B jarne Schieldrop, an analyst at SEB , bluntly stated Wednesday that the G7's proposal to cap prices is a "recipe for disaster" given the current stress in the oil market.
G7 leaders on Tuesday decided to look at ways to limit the price of Russian oil sold internationally and are seeking support from "like-minded" nations. This is one of the sticking points that will be discussed at this week's G7 meeting as the group seeks to find creative ways to lower energy prices for themselves and maintain adequate supplies of crude oil from Russia, while still punishing Russia. in what many consider an impossible task. So US Treasury Secretary Janet Yellen continued to pressure European countries to support a price cap.
According to Schieldrop, the plan looks "correct on paper, but it looks like a recipe for disaster right now," given the strong demand for crude oil and low supplies that have so far given Russia the upper hand in the market. According to the analyst, Russia could choose not to sell oil at a limited price, a decision that could lead to a drop in Russian production of up to 2 million barrels per day and therefore exposure to the price of up to 200 dollars. A very high figure that would send the world into recession.
According to Kommersant sources, Russian crude oil and condensate production increased by 5% in June, reaching 10.7 million bpd, a figure that includes between 800,000 and 900,000 bpd of condensates, not included in the OPEC + agreement. But Russia's oil exports fell 3.3% in June due to increased domestic refining demand.
Russian Deputy Prime Minister Alexander Novak said Russia will increase production again in July, so the danger seems a little less likely. Except they don't really try to apply the roof …
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The article Oil at $ 200? More than possible also thanks to the “price ceiling” of Draghi, word of a Swedish bank, also comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/petrolio-a-200-dollari-piu-che-possibile-anche-grazie-al-tetto-al-prezzo-di-draghi-parola-di-banca-svedese-anche/ on Thu, 30 Jun 2022 15:00:19 +0000.