Oil Markets Not Focused on Geopolitical Risks: RBC

The oil market has shrugged off supply fears stemming from the Middle East escalations following the Hamas attack on Israel early October according to RBC Head of Commodity Strategy Helima Croft in a CNBC interview.

• Despite rocket attacks by Houthi rebels on neutral ships this week, linked to the attacks “market participants are very focused on the oversupply situation, the growth of non-OPEC production in the US, Guyana, Canada and Brazil.” Croft said.
• “There are also concerns OPEC+ will not be able to deliver on the cuts promised” Helima said adding, “political risk is not really a factor in the market but we remain concerned about this escalating situation in the Red Sea.”
• “People are waiting to see if these OPEC+ countries beyond Saudi Arabia, deliver on these proposed cuts” Croft said.
• She previously said that RBC expect the market to be stuck in limbo as it awaits data from the cuts, unlikely to emerge until at least February.