Saturday 21 October 2017

Are fears of a rising threat of disruption to oil industry justified? - The National

Are fears of a rising threat of disruption to oil industry justified? - The National:

"Oil markets have been sanguine about geopolitical risk in recent years.

At the peak of oil prices in 2008, observers ascribed as much as US$10 to $15 per barrel of the price to a “risk premium”. Now, with Iraqi troops advancing on Kirkuk and the US president Donald Trump ceasing to certify the Iran nuclear deal, is it time for the risk premium to return?

Oil prices have risen significantly since their year-low of $44.82 for Brent crude in June. In the week running up to the Kurdish vote, Brent gained $3 to reach a 2017 high of $59.02 on September 25 before falling back a little, closing at $57.17 on Friday. Continuing adherence to the Opec production cuts agreement has been supported by robust demand."



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