2022-04-19

Western Ruling Class Hell Bent on Economic Destruction

MSN: Oil could jump to $185 a barrel if the EU agrees to an immediate ban of Russian crude exports, says JPMorgan
A full and immediate embargo would displace 4 million barrels per day of Russian oil, sending Brent crude to $185 a barrel as such a ban would leave "neither room nor time to re-route [supplies] to China, India, or other potential substitute buyers," the investment bank said in a note. That would mark a 63% surge from Brent's close of $113.16 on Monday.

...The EU is weighing a ban as a consequence of Russia's invasion of Ukraine in late February. But if the bloc were to put in place an embargo over a four-month period, prices are unlikely to rise much higher than current levels, the bank said. Such a time period would be similar to Europe's ban on coal imports.

"In a slower phase-out," the bank said, "Russia would have more time to adjust its oil flows toward friendlier buyers and global ex-OPEC+ supply growth would have time to grow sufficiently to fill at least some of the Russia-sized hole in global oil supply."

An embargo will have about four months impact, but wreck the European economy in the short-term. The biggest casualty will be the euro with the Fed simultaneously ramping up QT over the next three months.

No comments:

Post a Comment