Oil prices topped $110 today amid concerns over supply crunch from the ongoing war between Russia and Ukraine and western countries sanctions on Russia as OPEC and its allies, including Russia, will meet today to discuss April’s output.
The global benchmark Brent crude rose as high as $111.78 per barrel, the highest since 2013. Meanwhile, the West Texas Intermediate (WTI) reached $109.67 per barrel, the highest since 2011.
Goldman Sachs has raised its forecast for oil prices from $105/bbl earlier to $125 a barrel by May if the Russian invasion of Ukraine results in a supply shock.
The International Energy Agency on Tuesday announced plans to release 60 million barrels of oil reserves in a move to slow down surging oil prices. In the meantime, the U.S. will release 30 million barrels.
JPMorgan predicted for $150 a barrel of oil, but that was in February prior to the invasion. The firm warned of a spike in oil prices would likely come as a result of disrupted oil flows from Russia should the U.S. sanction it for hostile activities in Ukraine. Derailing Russia’s crude exports would result in a rise in Brent crude to easily reach $120 a barrel. And if Russian oil exports are cut in half, Brent oil prices would likely spike to $150 a barrel, which would be a record high for oil price, according to JPMorgan’s estimate.
