Oil: Geopolitics drive price swings – Rabobank

Rabobank’s Global Daily notes Oil prices surged as reports of attacks on shipping in the Strait of Hormuz hit sentiment, before easing after President Trump waived Graham Act sanctions and tariffs on Russian energy. The analysts highlight that potential future sanctions on major buyers of Russian crude and gas could significantly disrupt trade and keep Oil volatility elevated.

Hormuz attacks and sanctions waiver

"Oil prices surged following further reports of attacks on shipping in the Strait of Hormuz, with Iran claiming that two tankers carrying up to 4 million barrels of crude were struck by marine mines."

"Following market close on Friday news emerged that President Trump is enacting a waiver of steep Graham Act sanctions and tariffs that were due to come into effect."

"Active Brent crude futures are down by $1.80/bbl at time of writing."

"Depending on how the calculation is performed, the top five buyers of Russian energy products are likely to include China, India, Turkey and the European Union."

"Of course, the imposition of Graham Act sanctions would also directly contradict recent efforts of the administration to reduce fuel prices ahead of the midterm elections."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)