Writing just before the Monday pop higher for crude, Bank of America analysts says oil prices were reflecting any risk premium at all, “zero”. Said it was trading cheap.
Ahead:
- oil the “best upside hedge for pre-US election geopolitical risk”
- there is “no Goldilocks in Geopolitics as global players not too focused on de-escalation”
- and that oil is the “normal asset winner on unanticipated conflict”
I posted yesterday on Goldman Sachs seeing supply tightness ahead:
- We expect that healthy consumers and solid summer demand for transportation and cooling will push the oil market in a sizable Q3 deficit of 1.3mb/d
This article was written by Eamonn Sheridan at www.forexlive.com.
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