MNI Oil Weekly: Geopolitical Switch

Download Full Document Here:

Executive Summary: 

• Geopolitical Switch: Venezuela grabbed the headlines last week for oil markets, but escalations in Iran are now at the forefront. Oil markets are trying to price in a geopolitical risk premium if the situation escalates while Trump’s threats mount.
• Oil Markets: Crude prices have rallied amid supply risk from Iran and disruption to CPC exports which offset signs of returning Venezuela exports and market oversupply expectations. US diesel cracks have regained some ground after falling to the lowest since August on Jan. 7. Gasoline cracks have softened again amid the post-holiday lull in demand after firming slightly last week.
• Analyst Views: See oil market views and outlooks from key analyst names