Oil prices have path to $100/barrel on Russia cuts, but US likely to stand in way By Investing.com


Investing.com – Oil prices could hit $100 a barrel as soon as September following Russia’s move to cut production, although the US has to use its emergency oil reserves to keep prices under control.

“Russia’s actions could push the price to $90 as early as April, to mid-$90 by May and around $100 by September, putting pressure on US regulators in the run-up to elections,” JPMorgan said in a statement, adding that oil prices. it is up 18% since the end of December.

The rise in oil prices was expected to persuade OPEC and its allies, or OPEC+, to reduce their voluntary cuts, but Russia instead pledged in early March to increase its output by 471,000 barrels per day, or bpd, to bring the country. output to 9M bpd in June to meet the OPEC+ agreed limit, JPMorgan says.

But the road to $ 100 a barrel of Brent oil is facing many problems and not the response of policy in the US as the prices of oil and gas high in the election will not be allowed. But when oil prices begin to soar at the tap that could send gas prices back above $4 a gallon, the US might, just maybe, turn to the Strategic Petroleum Reserve spigot and pump out billions of barrels to cushion the price shock.

“The odds of another release will rise if US gasoline prices approach $4/gallon – which we believe could happen as soon as May – or if OPEC+ does not increase production at the June 1 meeting,” said JPMorgan, estimating that the US Government is and a facility to produce 60 million barrels of crude oil.

In 2022, President Joe Biden’s administration sold 180 million barrels of oil over six years from US oil reserves to reduce oil prices after Russia invaded Ukraine.

However, rising oil prices above $90 a barrel could meet a common enemy: weak demand.

Others agree, putting the $90 a barrel mark as the level at which good prospects can become too expensive, Macquarie said.

“If Brent reaches $90, we believe that most of the incoming supply will be converted to oil and the remaining less expensive products, especially related to growth, will be less,” Macquarie said.

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