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.
