Geopolitical risk premiums have not yet placed prices on the oil market
The geopolitical risk premium has not yet placed prices on the oil market, the ANZ research team said in a memo.
Markets are heavily paying such risks, including rising tensions between Iran and Israel in the Middle East and partial evacuation of the US at Iraqi embassies.
However, these events significantly increase the risk of supply disruption. ANZ also sees the key mineral industry, which is at the heart of the energy system. The US-China trade war continues to pose challenges for the US energy sector, they added.