“Should sanctions relief allow it, we believe Brent crude oil prices could drop between $5 and $10/bbl if Russian barrels suddenly do not need to make a long journey to India or China, and more supply is suddenly made available,” analysts at BofA said in a note this week.

Oil prices settled higher on Tuesday as supply disruptions mounted in Russia and the U.S., while talks to end the war in Ukraine capped gains as this could boost supply from Moscow.

Goldman Sachs analysts asserted that a potential ceasefire in Ukraine and the subsequent easing of sanctions on Russia would likely have a negligible impact on Russia’s oil flows. The financial institution contended that even with reduced sanctions,