Latest News

Oil could hit $200 a barrel, says Rystad Energy

© Reuters. FILE PHOTO: Oil barrels are pictured at the site of Canadian group Vermilion Energy in Parentis-en-Born, France, October 13, 2017. REUTERS/Regis Duvignau

OSLO (Reuters) -Global oil prices could rise to $200 a barrel if Europe and the United States ban imports of Russian oil, analysts at Oslo-based consultancy Rystad Energy said on Tuesday.

Oil prices jumped on Monday to their highest since 2008 on fears of a Western ban on Russian oil imports while a return of Iranian crude to the market remains far from certain.

The global Brent oil benchmark currently trades at $129 a barrel, up from about $97 before Russia’s invasion of Ukraine.

Oil prices could double from pre-conflict levels, but it wouldn’t be as bad as during the 1973 oil embargo, when oil prices tripled, said Jarand Rystad at the consultancy.

Rystad Energy analysts said the $200 estimate was based on an assumption that Western sanctions could remove about 4 million barrels per day (bpd) of Russian crude.

Russia, the world’s second-biggest oil exporter, ships about 7 million bpd of crude and oil products combined.

The United States is expected to announce a ban on Russian oil imports as soon as Tuesday, a source familiar with the matter told Reuters.

Last week Rystad had predicted that Brent crude would climb above $130 a barrel because Russian exports were to plunge by 1 million bpd as a consequence of previously announced sanctions and voluntary actions by companies.

Shell (LON:RDSa), among others, said on Tuesday that it would no longer buy Russian crude oil and would phase out its involvement in all Russian hydrocarbons.

Oil could hit $200 a barrel, says Rystad Energy

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

What's your reaction?

In Love
Not Sure

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *

More in:Latest News