JPMorgan: Oil Could Easily Hit $120 If Russia-Ukraine Tensions Escalate

Hamilton Nwosa
Writer

Ad

Fuel Price hike Looms as Dangote Refinery Halts Petrol Sales in Naira

By Abiola Olawale Dangote Petroleum Refinery has announced its decision to suspend sales of premium motor spirit (PMS), commonly known as petrol, in local currency starting from Sunday, September 28, 2025. The New Diplomat reports that the decision by the refinery owned by Africa’s richest person, Alhaji Aliko Dangote has sparked fears about a potential…

Iran recalls envoys to UK, France, Germany as UN sanctions begin again

By Obinna Uballa Iran has recalled its ambassadors to the United Kingdom, France, and Germany for consultations, after the three European powers triggered the “snapback” mechanism that reinstates United Nations sanctions on Tehran for the first time in ten years. “Following the irresponsible action of three European countries in abusing the JCPOA dispute resolution mechanism…

Dangote, PENGASSAN face-off worsen as union cut Gas supplies to Dangote Refinery

By Abiola Olawale The Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has issued an urgent directive to its members to halt all gas and crude oil supplies to the Dangote Petroleum Refinery effective immediately. In a strongly worded letter dated September 26, signed by PENGASSAN General Secretary Comrade Lumumba Ighotemu Okugbawa, the…

Ad

Oil prices rose late on Wednesday afternoon with Brent reaching just shy of $92 per barrel. But JPMorgan is warning that Brent crude could “easily” reach $120 per barrel—if the geopolitical conditions between Russia and Ukraine deteriorate.

The price spike of which JPMorgan is warning would likely come as a result of disrupted oil flows from Russia should the U.S. sanction it for hostile activities in Ukraine.

The warning may seem, at first glance, like a bold or even reckless prediction. However, Russia remains one of the top three oil producers in the world, producing roughly 11 million barrels of crude oil per day.

Of that, approximately half is exported—the majority of which makes its way to China.

China, however, has a history of purchasing crude oil from sanctioned nations such as Iran and Venezuela.

But even if Russian exports were just cut in half, oil prices could skyrocket to $150, JPMorgan said in a note this week.

For the Biden Administration, choosing between sanctioning Russia’s oil exports and keeping retail gasoline prices at American pumps from reaching the stratosphere seems like a no-win scenario.

Gasoline prices are already higher than the Administration—and American consumers—would like. As mid-terms loom, the ruling party will likely do everything within its power to lower—not raise—these prices at the pump.

While this would be devastating for both the Biden Administration and the American consumer, it would be equally taxing on Russia, which relies a great deal on crude oil revenue for its budget. Last year, the value of Russia’s crude oil exports totaled more than $300 million per day.

NB: Julianne Geiger wrote this article for Oilprice.com

Ad

Unlocking Opportunities in the Gulf of Guinea during UNGA80
X whatsapp