The price of global benchmark Brent crude oil could surge to $100 a barrel ahead of the U.S. election as Russia slashes its output, according to JPMorgan.
"The shift in Russia's oil strategy is surprising," Natasha Kaneva, head of global commodities strategy at JPMorgan, told clients in a note Wednesday.
Russia's cuts could push Brent to $90 in April and nearly $100 by September, which would put pressure on the Biden administration in the runup to the November presidential elections, Kaneva wrote.
The White House could, however, tap the strategic petroleum reserve with space to release up to 60 million barrels, Kaneva wrote.
Demand destruction, in turn, would result in lower crude prices, according to the analyst.
Persons:
Natasha Kaneva, Brent, Biden, Kaneva
Organizations:
Brent, JPMorgan, Reuters
Locations:
Russia, Saudi Arabia, Moscow, OPEC, U.S