Western warning against repercussions of G7 agreement on capping the Russian oil prices

Washington, SANA – US experts have warned on Friaday of the repercussions of the G7 decision to impose a cap on the price of Russian oil in an attempt to reduce Russia’s revenue from energy exports.

The US bank of JPMorgan warned that oil prices may rise to record highs if Russia decides to respond to these Western attempts.

“The Price ceilings may push Russia to reduce its oil production by up to 5 million barrels per day without causing serious damage to its economy.” the bank said in a report published Friday.

The worst-case scenario, which is a decrease in production by 5 million barrels per day, could push oil prices to $380 per barrel”, the bank’s analysts noted in the report.

Earlier today, the G7 finance chiefs agreed to set a cap on the prices of the Russian oil and gas supplies.

Russian presidential spokesman Dmitry Peskov had warned of the repercussions of such acts, indicating that this step would lead to a significant destabilization of the market.

On Thursday, Russian Deputy Prime Minister Alexander Novak said that the OPEC Plus countries, a group of 23 oil-producing countries that includes 13 members of OPEC, as well as India and China, do not support the idea of capping the price of Russian oil, considering that the idea is ridiculous and may destroy the entire global oil market.

ALI,Baraa