- “The most obvious and likely risk with a price cap is that Russia might
choose not to participate and instead retaliate by reducing exports.“
- “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.”
- A 3 million-barrel output cut to daily supplies would push benchmark London
crude prices to $190
- Worst-case scenario of 5 million could
mean “stratospheric” $380 crude
Info comes via Bloomberg (gated)
This article was written by Eamonn Sheridan at www.forexlive.com.
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