Oil prices rich despite no supply disruption – TDS

Source Fxstreet

Analyzing Risk of Disruptions to Strategic Chokepoints in the Middle East suggested crude oil pricing screened rich to historical analogs in the overnight session, TDS' Senior Commodity Strategist Daniel Ghali notes.

Strait of Hormuz still open, risk premium overstated

"Recall that zero barrels have been disrupted, hinting at a strategic decision to avoid damaging global energy supply. Current prices are consistent with our analysis of three quarter-centuries of geopolitical risk premiums in oil markets."

"For as long as Iranian energy exports are flowing freely, incentives to block the Strait of Hormuz are akin to a mutually assured economic destruction, inferring little incentive to do so."

"Even further, more barrels are flowing out of Iran as a result of Israeli strikes on domestic consumption, and US shale producers hedging at higher prices will likely lower the floor price for crude if the status-quo prevails. CTAs are max long, but will only meaningfully sell below $76.85/bbl."


Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Forex Today: GDP releases from major economies, BoC and Fed rate decisions to ramp up volatilityFinancial markets turn relatively quiet early Wednesday as investors gear up for key events.
Author  FXStreet
13 hours ago
Financial markets turn relatively quiet early Wednesday as investors gear up for key events.
placeholder
Google lays off its workforce to significantly invest in AIGoogle encourages its workers to boost their productivity by using AI. 
Author  Cryptopolitan
14 hours ago
Google encourages its workers to boost their productivity by using AI. 
placeholder
On-chain data showed that whales are aggressively accumulating more Bitcoin and EthereumOn-chain data showed that whales are aggressively accumulating more Bitcoin and Ethereum.
Author  Cryptopolitan
14 hours ago
On-chain data showed that whales are aggressively accumulating more Bitcoin and Ethereum.
placeholder
WTI holds near $69.00, five-week highs, following Trump’s renewed threat to RussiaWTI steadies after registering gains in the previous two successive sessions, trading around $68.90 per barrel during the early European hours on Wednesday.
Author  FXStreet
15 hours ago
WTI steadies after registering gains in the previous two successive sessions, trading around $68.90 per barrel during the early European hours on Wednesday.
placeholder
Gold price consolidates in $3,320-3,330 band; looks to Fed for meaningful impetusGold price (XAU/USD) seesaws between tepid gains/minor losses during the Asian session on Wednesday.
Author  FXStreet
15 hours ago
Gold price (XAU/USD) seesaws between tepid gains/minor losses during the Asian session on Wednesday.
goTop
quote