{"id":63788,"date":"2022-10-13T07:13:00","date_gmt":"2022-10-13T12:13:00","guid":{"rendered":"https:\/\/olduvai.ca\/?p=63788"},"modified":"2022-10-13T07:13:00","modified_gmt":"2022-10-13T12:13:00","slug":"crude-oil-could-hit-125-a-barrel-as-russias-reaction-to-a-us-led-price-cap-threatens-to-squeeze-supply-ubs-says","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=63788","title":{"rendered":"Crude oil could hit $125 a barrel as Russia&#8217;s reaction to a US-led price cap threatens to squeeze supply, UBS says"},"content":{"rendered":"<section class=\"post-headline-wrapper\n           default-headline\"><\/p>\n<h3 class=\"post-headline  \"><a href=\"https:\/\/markets.businessinsider.com\/news\/commodities\/oil-price-outlook-russia-g7-crude-cap-125-barrel-ubs-2022-10\">Crude oil could hit $125 a barrel as Russia&#8217;s reaction to a US-led price cap threatens to squeeze supply, UBS says<\/a><\/h3>\n<\/section>\n<section id=\"l-content\" class=\" is-right-rail   with-rail-video-ad\" data-track-page-area=\"Post\" data-post-content=\"\">\n<section class=\"row\">\n<div class=\"col-12\">\n<article>\n<figure class=\"figure image-figure-image  \" data-type=\"img\" data-e2e-name=\"image-figure-image\" data-media-container=\"image\">\n<div class=\"aspect-ratio\"><img decoding=\"async\" src=\"https:\/\/i.insider.com\/62e28f07e1179200195eb6e5?width=700\" sizes=\"(min-width: 1280px) 900px\" srcset=\"https:\/\/i.insider.com\/62e28f07e1179200195eb6e5?width=400&amp;format=jpeg&amp;auto=webp 400w, https:\/\/i.insider.com\/62e28f07e1179200195eb6e5?width=500&amp;format=jpeg&amp;auto=webp 500w, https:\/\/i.insider.com\/62e28f07e1179200195eb6e5?width=700&amp;format=jpeg&amp;auto=webp 700w, https:\/\/i.insider.com\/62e28f07e1179200195eb6e5?width=1000&amp;format=jpeg&amp;auto=webp 1000w, https:\/\/i.insider.com\/62e28f07e1179200195eb6e5?width=1300&amp;format=jpeg&amp;auto=webp 1300w, https:\/\/i.insider.com\/62e28f07e1179200195eb6e5?width=2000&amp;format=jpeg&amp;auto=webp 2000w\" alt=\"US oil tanker\" \/><\/div><figcaption class=\"image-caption headline-bold\" data-e2e-name=\"image-caption\">Oil prices are ticking upwards again after falling for the past three to four months.\u00a0<\/figcaption><span class=\"image-source-caption \"><span class=\"image-source headline-regular\" data-e2e-name=\"image-source\">George Frey\/Getty Images<\/span><\/span><\/figure>\n<div>\n<section class=\"post-content typography   \" data-track-content=\"\" data-post-type=\"post\">\n<div id=\"piano-inline-content-wrapper\" data-piano-inline-content-wrapper=\"\">\n<section class=\"inline-offer auto-renew-29\" data-offer-key=\"auto-renew-29\" data-component-type=\"inline-offer\" data-place-after-element-selector=\".post-content .content-lock-content p\"><\/section>\n<div data-component-type=\"content-lock\" data-load-strategy=\"exclude\">\n<div class=\"content-lock-content\">\n<ul class=\"summary-list\">\n<li>UBS expects oil will hit $125 a barrel if Russia reacts to a planned G7 oil price cap as promised.<\/li>\n<li>Russia has said it will cut its exports if the US-led cap comes in, which would tighten crude supply.<\/li>\n<li>&#8220;As we get further draws, you&#8217;re going to see prices going up. That simple,&#8221; Dominic Schnider told CNBC.<\/li>\n<\/ul>\n<div id=\"formContainer\" class=\"inline-newsletter-signup headline-regular\" data-component-type=\"inline-newsletter-module\" data-event-label=\"10_things_markets\" data-list=\"10 Things Before the Opening Bell\" data-acq-source=\"marketsverticalinline\"><\/div>\n<p>Crude oil could hit $125 a barrel as Russia&#8217;s response to a US-led price cap plan threatens to tighten the global market even further, a top UBS commodities strategist has said.<\/p>\n<p>Moscow has said it&#8217;s\u00a0<a href=\"https:\/\/markets.businessinsider.com\/news\/commodities\/russia-threatens-cut-oil-output-us-led-price-cap-2022-10?utm_medium=ingest&amp;utm_source=markets&amp;utm_medium=ingest&amp;utm_source=markets\" data-analytics-module=\"body_link\" data-analytics-post-depth=\"40\">prepared to cut its oil output<\/a>\u00a0if the G7 nations carry through with the price cap, warning the measure will end up primarily hurting those behind the plan.<\/p>\n<p>Dominic Schnider, head of commodities at UBS Global Wealth Management, said that could pull another 1 million barrels a day at a time when the oil market is already facing a supply squeeze from the OPEC+ decision to slash its production targets.<\/p>\n<p>&#8220;The Russians were clear: &#8216;If you force us to accept the price cap, we&#8217;re simply not going to deliver crude to you,&#8221; Schnider said in a\u00a0<a href=\"https:\/\/www.cnbc.com\/video\/2022\/10\/11\/crude-oil-could-hit-125-per-barrel-says-ubs.html\" data-analytics-module=\"body_link\" data-analytics-post-depth=\"40\">Tuesday interview with CNBC<\/a>,<\/p>\n<p>&#8220;And so I think that kind of situation means, maybe, from a global supply perspective, there&#8217;s an additional 1 million barrels at risk here.<\/p>\n<p>&#8220;As we get further draws, you&#8217;re going to see prices going up. That simple. And we&#8217;re looking at $110-$125, that&#8217;s for us our point of gravity when it comes to crude oil,&#8221; he added.<\/p>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/article>\n<\/div>\n<\/section>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>Crude oil could hit $125 a barrel as Russia&#8217;s reaction to a US-led price cap threatens to squeeze supply, UBS says Oil prices are ticking upwards again after falling for the past three to four months.\u00a0George Frey\/Getty Images UBS expects oil will hit $125 a barrel if Russia reacts to a planned G7 oil price [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3,5],"tags":[9218,184,694,1029,827,834,33003],"class_list":["post-63788","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","category-geopolitics","tag-business-insider","tag-crude-oil","tag-russia","tag-ubs","tag-united-states","tag-us","tag-zahra-tayeb"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63788"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63788\/revisions"}],"predecessor-version":[{"id":63789,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63788\/revisions\/63789"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}