MOSCOW (RIA Novosti): The price of Brent will jump to $240 per barrel by summer if the rest of the Western countries, following the US, impose a similar embargo on Russian oil, experts at the analytical co-mpany Rystad Energy say .
On March 8, US Presid-ent Biden signed a decree banning the import of oil, liquefied natural gas (LN-G), coal, and a number of petroleum products from Russia. Next , the UK ann-ounced that by the end of 2022 it would stop importing oil and oil products fro-m the Russian Federation . Canada also announced plans to ban the import of Russian oil, although in its case this statement was rather just symbolic.
“Oil prices could reach $240 a barrel in the summer in the worst-case scenario if Western countries impose massive sanctions on Russian oil exports,” Rystad said in a review.
Analysts of the agency explain that when other Western countries impose a similar ban on Russian oil on Russian oil, a “hole” of 4.3 million barrels per day will be formed in the market. This volume simply cannot be quickly replaced by other sources of supply.
“If by April 2022 the export of Russian oil to the West in the amount of 4.3 million barrels per day is stopped, and China and India maintain their current import volumes, then Brent will rise in price to $ 240 per barrel by summer, wh-ich will destroy demand,” – consider in Rystad.
“This oil-related collapse will be the biggest since the 1990 Gulf War , when oil prices doubled,” the experts conclude. They believe that the cost of oil at $240 per barrel will provoke a global recession, and the prices themselves will “self-destruct” due to the degradation of demand in just a few months and fall sharply.
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