- Attacks on Saudi oil plants have boosted concerns about supply security in the Middle East and should raise the risk premium in the global crude market, shifting focus from a gloomy economic backdrop, S&P Global Platts said on Sunday.
“The sudden change in geopolitical risk warrants not only an elimination of the $5-10 a barrel discount on bearish sentiment, but adds a potential $5-10 a barrel premium to account for now-undeniably high Middle Eastern dangers to supply and the sudden elimination of spare capacity,” it said in a note.
Prices could move higher still if Saudi output is curtailed for a more substantial period, the note’s author Chris Midgley, global head of analytics at S&P Global Platts, wrote. However, that is not its current assumption. Platts said, however, that “any evidence of prolonged disruption of production would heavily impact OPEC spare capacity and the ability of the IEA to use Strategic Petroleum Reserves to shore up the market”.
Nothing mentioned about barbrian regim in Iran which fight thru their terrorist agent in Yemen and Iraq Iran leads the region to war Surely Saudi patient will come to end Then the Iranian cowards will face the result of thier terrorist attacks
Footnote: Saudi oil strikes also driving up risks of World War. Fingers crossed that financial markets benefit and remain safe. *yes, of course I’m joking.
So toxic touching raw oil.
A risk? Like they might NOT raise precises? HA! They use ANY excuse they find to raise prices. 'The prince has a cold, so production is slow...guess you'll have to pay MORE!' Now that they have a legitimate excuse? Ha!
Ummm...duh.
Didn't a group claimed responsibility? The US and Saudis reject it, and have other ideas on culprit?
Looks like blood 2 me !