Analysts Warn Of $150 Oil If The West Bans Russian Crude

Source: OilPrice

The United States and the European Union have been reluctant to slap sanctions on Russia's oil and gas exports since Putin invaded Ukraine, as the Western allies are concerned about the repercussions on Europe's energy supply and skyrocketing oil and gasoline prices.  

Still, potential sanctions on Russian energy exports are not off the table. If the West bans Russian oil, international crude prices could skyrocket to $150 per barrel, analysts say. 

But even in the event of no sanctions on Russian oil, prices are set to remain very high and jump higher still because buyers and refiners are in a "self-sanctioning" mode, not daring to touch Russian crude and looking for alternative supplies. The possibility of an Iranian nuclear deal that would allow Iran to legitimately return to exporting its oil is a potential drag on oil prices, but barrels from the Islamic Republic cannot replace the loss of Russian oil, analysts say.