Oil could jump to $185 a barrel if the EU agrees to an immediate ban of Russian crude exports, says JPMorgan

MarketsInsider/Carla Mozee/4-19-2022

“A full and immediate embargo would displace 4 million barrels per day of Russian oil, sending Brent crude to $185 a barrel as such a ban would leave ‘neither room nor time to re-route [supplies] to China, India, or other potential substitute buyers,’ the investment bank said in a note. That would mark a 63% surge from Brent’s close of $113.16 on Monday.”

USAGOLD note: JPMorgan explains the ramifications of a European oil embargo, including the developing logistical problems that could drive prices higher … $185 oil could present a major problem. Nothing fans the inflationary fires like a rising oil price. In the long-term chart below (drawn in log scale), please note the spike in oil prices during the 1970s inflationary crisis.

Brent crude oil price
(Log scale, 1948 to present)

Chart courtesy of TradingView.com