July 23, 2024 14:51 GMT
Geopol Risk Premium Near Zero for Oil: Goldman Sachs
OIL
The geopolitical risk premium is currently near zero despite rising tensions between Israel and Yemen and Biden’s exit from the election race, Goldman Sachs said.
- “The average July Brent price is at our inventory-based $85/bbl forecast," Golman Sachs said in a note.
- Escalating tensions in the Middle East continue following a Houthi drone strike on Tel Aviv and then an Israeli response on Hodeidah. This is in addition to a worsening situation on the Israel-Lebanon border.
- However, the lack of any tangible supply disruption to date continues to keep a lid on any risk premium on oil prices.
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