Notice: The Chamber's documentation and customs declaration services announce festive opening hours. Click here to view.

Analysts at JP Morgan have predicted that oil prices could reach $185 a barrel by the end of the year.

JP Morgan strategist Natasha Kaneva said in a note yesterday that just under 70% of Russian oil can’t find a buyer.

She said that if the self-sanction continued, the Brent oil price could end the year as high as $185 a barrel.

Russia 'ostracised'

“While the US and its allies have so far stopped short of imposing penalties directly on Russian oil and gas, on Tuesday it became increasingly clear that Russian oil is being ostracised,” she writes.

She said this is likely to send oil prices much higher.

Brent crude, the European benchmark, is already trading at $111, up 75% over the past year, and as long as demand remains high, there is little way that supply will be able to meet that demand this year, particularly with workers in short supply and other constraints.

“Crucially, were disruption to Russian volumes to last throughout the year, Brent oil price could exit the year at $185/bbl,” Kaneva writes.

BP joins aid effort

Meanwhile, bp has announced that is donating $20million to support the growing humanitarian crisis in Ukraine.

The funding includes:

  • $10 million in charitable donations – $5 million to the International Red Cross – and $5 million to UNICEF to support children and families.
  • $5 million in food and fuel cards to be distributed at the Polish border and in the country by bp teams there
  • $5 million of support across Poland, Hungary and Romania – working with local aid organisations to help keep people safe.
  • Paid time off for bp staff in Poland and Hungary as they volunteer to support refugees

Chief executive Bernard Looney said: "In these desperately difficult times, we continue to keep all our affected colleagues and the people of Ukraine in our thoughts."

More like this…

View all