Oil price is expected to reach $200 after a group of rich nations under the aegis of the G7 announces a plan to cap the price of Russian crude, IgbereTV reports
G7 is an inter-governmental political forum of the seven-largest free-market economies – Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
The measure was proposed as one way to punish Russia for its invasion of Ukraine.
However, the imposition of a price cap on Russian oil could hit the country’s crude exports, driving the oil price cost the world over, from around $114- $117 per barrel to over $200 a barrel.
Bjarne Schieldrop SEB Group chief commodities analyst made this projection in a note published on Tuesday, 29 June.
According to him, in no uncertain terms that the G7’s price capping proposal was a “recipe for disaster” given the current stress that the oil market is under.
“The G7 countries are today actually praying that Russian oil exports will not go down. Because if they do then the oil price will spike from current lazy $117/bl to instead above $200/bl,” he said
