Oil: Risk premium returns on Gulf supply concerns – Commerzbank
The post Oil: Risk premium returns on Gulf supply concerns – Commerzbank appeared on BitcoinEthereumNews.com. Commerzbank’s Thu Lan Nguyen argues that recent US policy towards Iran has reversed market expectations of a rapid normalisation in Gulf energy supplies, challenging earlier pricing of an Oil supply glut. With the Iran deal apparently called off by President Trump, she notes that Middle East risks remain unresolved, implying a renewed risk premium and potential volatility in energy prices. US stance revives supply risk “Over the past few days we had expressed scepticism about the rapid decline in the oil price, not least because shipping traffic through the Strait of Hormuz has picked up but still remains well below pre-war levels. The market, however, appeared to look straight through this and was already pricing in supply glut on the oil market.” “It turns out that the US administration shares our sceptical assessment of the oil supply situation rather than the market’s. And