Potential Geopolitical Risks Hitting Oil Market in 2020

1024

The oil market is closing out 2019 with a smaller geopolitical risk premium despite the September attack on Saudi Arabia’s Abqaiq facility exposing a staggering supply vulnerability, reports Platts.

Greg Priddy, Stratfor’s director of global energy and Middle East, argues the oil market can no longer hold onto a risk premium, between hedging and the responsiveness of US shale production.

He added that a sharp premium would only return in the event of a major and prolonged oil supply disruption.

Priddy explained about the other potential geopolitical hot spots next year, including a tinderbox in the Middle East, OPEC’s oversupply woes, the “festering” US/China trade dispute, and the US presidential election.

 

Did you subscribe to our daily newsletter?

It’s Free! Click here to Subscribe!

Source: Platts