PNN – Goldman Sachs, an American and multinational banking and financial services company, announced that the price of a barrel of oil will reach $85 following the US sanctions against Russia.
According to the report of Pakistan News Network from Reuters, Goldman Sachs stated that if the latest package of Washington’s sanctions against Moscow leads to a decrease in Russian oil production, the price of Brent crude oil may reach more than $85 per barrel in a short period of time.
This bank also emphasized that if the decrease in oil production in Russia coincides with the decrease in oil production in Iran, the price of a barrel can reach 90 dollars.
Reports indicate that US President Joe Biden imposed a new sanctions package against Russia on Friday. In this package, Russia’s oil and gas revenues were sanctioned.
These sanctions include 183 oil tankers, several insurance companies, several government officials and CEOs of various Russian oil refining companies.
The sanctions also target Russia’s largest oil producers, including Gazprom, Surgut Naftgaz, Russia Gas Alliance and the Gazprom Shelf Project.
Experts believe that with this extensive sanctions package, Biden intends to give leverage to Kiev and Donald Trump, the president-elect of the United States, so that they can reach peace agreements in Ukraine.
Statistics show that until now, following the imposition of new sanctions against Russia, the price of Brent crude oil has increased by 3% and reached 81 dollars per barrel.
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Analysts believe that the embargo on Russian producers and ships may force Chinese and Indian refineries to source more oil from the Middle East, Africa and the United States, as well as increase oil prices and transportation costs.
Goldman Sachs research indicates that the sanctioned vessels carried around 1.7 million barrels of oil per day last year.
While sanctions could boost oil prices, Goldman Sachs predicted that Brent crude prices would range between $70 and $85 per barrel this year.
Experts believe that Moscow may lower its oil prices to encourage shipping.
Moscow could also produce more oil domestically and increase fuel exports to ease restrictions on oil shipments.
Analysts also noted that the incoming administration of Donald Trump, in order to reduce energy prices in the United States, wants to prevent the continuous reduction of Russian oil supply.
Trump is going to be sworn in as the new president of the United States on January 20.
On February 21, 2022, the President of Russia recognized the independence of the Donetsk and Luhansk People’s Republics in the Donbas region, criticizing the West’s indifference to Moscow’s security concerns.\
Three days later, on Thursday, February 24, Vladimir Putin launched a military operation that he called “special operations” against Ukraine, and thus the tense relations between Moscow and Kiev turned into a military confrontation.
In response to this Russian action, America and Western countries have imposed extensive sanctions against Moscow and sent billions of dollars of weapons and military equipment to Kiev.