Commodities Focus: Oil price cap and the law of unintended consequences

Natasha Kaneva is joined by Anatoliy Shal, JPM’s Chief Russia Economist, to discuss the potential impact of the new set of goals set out by the G-7 to cut Moscow’s revenues. The G7 announced a potential cap on prices of Russian oil and an import ban of Russian gold. Given Russia’s strong fiscal position thanks to higher energy prices and lower imports in the wake of western sanctions, the country can cut up to 5 mbd of production without excessively hurting its economic interest, all the while driving global oil prices to stratospheric $380/bbl.

Speakers:

Natasha Kaneva, Head of Global Oil and Commodities Research

Anatoliy Shal, Chief Russia Economist

This podcast was recorded on July 1, 2022.

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