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OMLandshark
Ole Miss Fan
Member since Apr 2009
104005 posts

JP Morgan warns that oil prices could go up to $380 a barrel

Bloomberg

quote:

Global oil prices could reach a “stratospheric” $380 a barrel if US and European penalties prompt Russia to inflict retaliatory crude-output cuts, JPMorgan Chase & Co. analysts warned.

The Group of Seven nations are hammering out a complicated mechanism to cap the price fetched by Russian oil in a bid to tighten the screws on Vladimir Putin’s war machine in Ukraine. But given Moscow’s robust fiscal position, the nation can afford to slash daily crude production by 5 million barrels without excessively damaging the economy, JPMorgan analysts including Natasha Kaneva wrote in a note to clients.

For much of the rest of the world, however, the results could be disastrous. A 3 million-barrel cut to daily supplies would push benchmark London crude prices to $190, while the worst-case scenario of 5 million could mean “stratospheric” $380 crude, the analysts wrote.

“The most obvious and likely risk with a price cap is that Russia might choose not to participate and instead retaliate by reducing exports,” the analysts wrote. “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.”


And for reference, we are currently on $111 a barrel. Great job Biden.


Chad504boy
4 posts
Member since Feb 2005
154605 posts

We have terrorists running our country


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804
Oates Mustache
US Space Force Fan
Member since Oct 2011
17337 posts
 Online 

I wonder what the crack spread would be for $380. Holy shit


whiskey over ice
LSU Fan
Member since Sep 2020
1978 posts



#weready


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630
notiger1997
Metairie
Member since May 2009
52611 posts
 Online 

I would be shocked if it ever hits $150


Spankum
LSU Fan
Miss-sippi
Member since Jan 2007
53495 posts

J.P. Morgan must have some oil company stocks that he wants to sell…
This post was edited on 7/2 at 1:24 pm


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230
BuckyCheese
Wisconsin Fan
Member since Jan 2015
32145 posts

quote:

The Group of Seven nations are hammering out a complicated mechanism to cap the price fetched by Russian oil


And just how do they plan to do this?



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71
Vamos Brandonos
Member since Mar 2022
1021 posts

quote:

I would be shocked if it ever hits $150


Well it already has (08, 11) so show us your shocked face.


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193
Adam Banks
LSU Fan
District 5
Member since Sep 2009
26249 posts

We must all be ready to do our part


Chef Curry
USA Fan
Member since Mar 2019
1463 posts

Necessary for the liberal world order.


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233
HoustonGumbeauxGuy
LSU Fan
Member since Jul 2011
24750 posts

The Houston economy is loving this


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84
Leonard
Houston Astros Fan
New Orleans
Member since Sep 2014
4086 posts

“Tree fiddy” was sitting right there JPMorgan and you fricking blew it


BuckyCheese
Wisconsin Fan
Member since Jan 2015
32145 posts

G7 countries


Putin


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260
Sao
SMU Fan
East Texas Piney Woods
Member since Jun 2009
58500 posts


quote:

JPMorgan Chase & Co. analysts warned.


Yeah, they're so nice to warn us all. Freaking crooks. Don't buy the hype, Fellas.


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91
OMLandshark
Ole Miss Fan
Member since Apr 2009
104005 posts

quote:

We must all be ready to do our part


Yeah, because if you aren’t for giving Raytheon, Boeing, corrupt Ukrainian oligarchs, and Nazi battalions tens of billions of dollars of cash and weaponry, you’re a Putin supporter.


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162
Play_Neck
LSU Fan
Member since Dec 2014
1366 posts

how much extra deposits can we tap in the US and Canada? (When I was in engineering school 20-30 years ago, they were forecasting peak oil around the 2030s, but I know since shale blew up and more deposits were found that's no longer a good estimate.) I ask because it seems like the best way to frick Putin over and add some cushion to the price oil is to drill a shite ton of it here.


BuckyCheese
Wisconsin Fan
Member since Jan 2015
32145 posts

quote:

how much extra deposits can we tap in the US and Canada? (When I was in engineering school 20-30 years ago, they were forecasting peak oil around the 2030s, but I know since shale blew up and more deposits were found that's no longer a good estimate.) I ask because it seems like the best way to frick Putin over and add some cushion to the price oil is to drill a shite ton of it here.



You don't understand. We won't produce more oil/gas here because the dems want you to drive an electric car/truck/lawn mower.


GREENHEAD22
LSU Fan
Member since Nov 2009
17631 posts

There is plenty of oil, the problem is between ESG bs and getting access to it. If Biden follows through and doesn't allow anymore lease sales it will bring the GOM industry to a stand still, soon.

Most companies are already low on prospects inventory.
This post was edited on 7/2 at 4:06 pm


Oates Mustache
US Space Force Fan
Member since Oct 2011
17337 posts
 Online 

Y'all wanna know some of the reasons for high prices too?

Google the EPA RINS program. It's a "tax" on O&G, a huge billion dollar one. Guess who gets that passed to?


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60
michael corleone
LSU Fan
baton rouge
Member since Jun 2005
4884 posts

Instead of tightening the screws on Putin he should loosen the regulatory screws on domestic production and refinement. It’s a simple solution but doesn’t fit their agenda.


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