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Oil prices. Forecast of the head of JP Morgan Chase and declaration of Saudi Arabia on increasing production

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Crude oil prices may soar by several dozen percent. – As a consequence of the war in Ukraine, the price of a barrel of oil may rise to USD 150-175 – Jamie Dimon, president of JP Morgan Chase assessed on Wednesday. His statement was noted by the London daily “Financial Times”. Oil producers from OPEC + will hold a routine meeting on Thursday to discuss oil supply policy for July. Saudi Arabia may be ready to increase production, according to FT.

On Wednesday, JP Morgan Chase chief Jamie Dimon warned investors attending a conference organized by Autonomous Research to prepare for an economic “hurricane” caused by war in Ukraine – reported “Finacial Times”. Dimon referred to his own statement from a week ago, when he described the economic threats as “storm clouds”.

Forecasts of the head of JP Morgan Chase

– I said they are storm clouds, big storm clouds. It’s a hurricane, he said Wednesday. “This hurricane is around the corner and it’s headed our way.” We just don’t know if it’s a minor hurricane or Superstorm Sandy … And you better prepare yourself – added Dimon quoted by “FT”.

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According to the president of JP Morgan Chase, the war in Ukraine will continue to put pressure on the global commodity markets. According to Dimon, the conflict could drive oil prices up to $ 150 or $ 175 a barrel.

The London daily noted that Brent crude oil – the international benchmark for crude oil – is currently trading at around $ 117. “This week, the EU agreed to ban oil imports from Russiatightening sanctions against Moscow in connection with its invasion of Moscow Ukraine“- the newspaper recalled.

Read more: Where does the oil come from, if not from Russia? An expert on the two “greatest hopes in the world”

– We are not taking appropriate measures to protect Europe from what will happen on the oil market in the short term. We are also not taking the right action to save all of you from what will happen to oil in the next five years, which means that its price must actually increase, said Jamie Dimon at the conference.

JPMorgan Chase and Co is one of the largest financial holdings in the world. At the end of 2021, it was the fifth largest bank in the world by assets – in December last year, they totaled $ 3.74 trillion.

OPEC + meeting

Saudi Arabia is ready to increase oil production if production in Russia drops significantly due to Western sanctions imposed on it, the Financial Times reported on Wednesday, citing its sources.

There were talks about an immediate increase in production by Saudi Arabia and United Arab Emiratesthat could be announced at the OPEC + meeting on Thursday, it was reported citing a diplomatic source.

OPEC + is made up of members of the Organization of the Petroleum Exporting Countries and their allies, including Russia.

The source said that the increase in production, which is scheduled for September, will be moved to July and August.

Saudi Arabia, the largest producer in OPEC, has earlier rejected Washington’s calls to increase oil production by more than the incremental increases it has agreed to as a member of the OPEC + group, which also includes Russia.

The Saudis were to agree to a change of position and increase production to calm oil prices.

Oil prices

On Thursday morning, the price of a barrel of Brent crude oil traded in London was $ 114.09, and WTI was $ 112.94.

On the day of Russia’s attack on Ukraine, February 24, the Brent barrel was valued at $ 99, and the WTI at $ 92.8. At the peak of the rally, US crude oil prices were up to $ 130 a barrel, and Brent crude oil prices were close to $ 140 a barrel.

Read more: Oil embargo from the East. How much will Russia lose from this?

Main photo source: Shutterstock

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