23 Jul 2014
Oil almost isolated from geopolitical jitters – Danske Bank
FXStreet (Edinburgh) - Chief Analyst at Danske Bank Jens Pedersen assesses the recent price action from the crude oil.
Key Quotes
“Geopolitical conflicts in Ukraine and Gaza, respectively, are likely to be the focal point today”.
“Note though, the global oil market has so far taken the recent escalation of geopolitical tensions relatively calmly”.
“First, ample supplies on the global market are keeping a hand over oil prices. Second, Russia’s energy trade has not been affected by sanctions, which have so far targeted certain individuals and organisations.
“Hence, in our view, the risk of a higher oil price is relatively limited at the current stage”.
“That said, the long list of geopolitical events recently has triggered a small rise in oil price volatility albeit from a very low level”.
Key Quotes
“Geopolitical conflicts in Ukraine and Gaza, respectively, are likely to be the focal point today”.
“Note though, the global oil market has so far taken the recent escalation of geopolitical tensions relatively calmly”.
“First, ample supplies on the global market are keeping a hand over oil prices. Second, Russia’s energy trade has not been affected by sanctions, which have so far targeted certain individuals and organisations.
“Hence, in our view, the risk of a higher oil price is relatively limited at the current stage”.
“That said, the long list of geopolitical events recently has triggered a small rise in oil price volatility albeit from a very low level”.