{"id":16861,"date":"2016-01-24T18:07:41","date_gmt":"2016-01-24T23:07:41","guid":{"rendered":"http:\/\/olduvai.ca\/?p=16861"},"modified":"2016-01-24T18:07:56","modified_gmt":"2016-01-24T23:07:56","slug":"risk-premium-returns-to-oil-markets-as-geopolitical-tensions-rise","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=16861","title":{"rendered":"Risk Premium Returns To Oil Markets As Geopolitical Tensions Rise"},"content":{"rendered":"

Risk Premium Returns To Oil Markets As Geopolitical Tensions Rise<\/a><\/h3>\n
Geopolitical risk premiums<\/a>\u00a0are likely to return to oil markets as the possibility of an attack on a large petroleum facility grows significantly amid rising tensions in the Middle East, possibly putting a floor on prices.<\/div>\n
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“The risk of an attack is greater than 50pc, which means it is more likely than not,” president of consultancy ESAI Sarah Emerson said on the sidelines of the Argus Americas Crude Summit.<\/p>\n

Oil prices recently plunged to 13-year lows, to sub-$30\/bbl, amid expectations a market oversupply will worsen as major supplier Iran ramps up exports following a lifting of sanctions, while the demand outlook remains weak as consumption in key market China slows. The supply-demand mismatch has kept investor attention away from the geopolitical unrest in the Middle East and the worsening economic and social crisis in producers such as Venezuela.<\/p>\n

Related:\u00a0Oil Markets Are Balancing Faster Than IEA Would Have Us Believe<\/strong><\/a><\/p>\n

“Everybody has so far been focused on the oversupply,” chief commodity strategist at RBC Capital Markets Helima Croft said, explaining the lack of a risk premium in the market right now. The high level of global oil inventories is giving the market confidence that any disruption in supplies will be quickly filled in, she said.<\/p>\n

The latest escalation in the row between OPEC members Saudi Arabia and Iran came earlier this month after Riyadh severed its diplomatic relations with Tehran in response to the storming of its embassy by Iranian protesters angry at the execution of Saudi Shiite cleric Nimr al-Nimr.<\/p>\n

Related:\u00a0Why The Oil Price Crash Is Killing The NHL<\/strong><\/a><\/p>\n

Members of the Iranian diplomatic mission to Riyadh have been asked to leave Saudi Arabia within 48 hours, Saudi foreign minister Adel Jubeir said yesterday. Jubeir said the attack on the Saudi embassy in Tehran was similar to attacks against the British embassy several years earlier, as well as on the U.S. embassy in 1979.<\/p>\n

…click on the above link to read the rest of the article…<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Risk Premium Returns To Oil Markets As Geopolitical Tensions Rise Geopolitical risk premiums\u00a0are likely to return to oil markets as the possibility of an attack on a large petroleum facility grows significantly amid rising tensions in the Middle East, possibly putting a floor on prices. “The risk of an attack is greater than 50pc, which […]<\/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":[11925,4333,522,588,592,5332,690],"class_list":["post-16861","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","category-geopolitics","tag-argus-media","tag-crude","tag-middle-east","tag-oil","tag-oil-price","tag-oilprice-com","tag-risk"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16861","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=16861"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16861\/revisions"}],"predecessor-version":[{"id":16863,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/16861\/revisions\/16863"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}