JP Morgan Makes Dire And Terrifying Prediction On Future Oil Prices

If you think gas is expensive now, you ain’t seen nothin’ yet.

The price of a barrel of oil, which now hovers around $111, could more than triple to a staggering $380 if Russia decides to cut its output, analysts at JP Morgan Chase are warning. With the price of a gallon of gas in America now topping $5 in many areas, such a dramatic increase in oil costs would be catastrophic to the economy.

“It is likely that the government could retaliate by cutting output as a way to inflict pain on the West,” analysts wrote. “The tightness of the global oil market is on Russia’s side.”

The West is putting the squeeze on Moscow over its war in Ukraine, but Russia, which supplies much of Europe with oil for heating and gasoline, could easily flip the script by cutting output. Cutting production by 3 million barrels a day would push global prices to $190, and a worst-case scenario of a 5-million-per-day cut would send the price of a single barrel to $380, analyst Natasha Kaneva wrote. – READ MORE