Energy
Thursday, October 12th, 2023 1:57 pm EDT
Key Points
- The International Energy Agency (IEA) has cautioned that oil markets are likely to remain volatile due to the ongoing Israel-Hamas conflict, with potential disruptions to Middle East oil output being closely monitored by investors.
- While the conflict has not yet directly impacted physical oil supply, the IEA noted that the situation in the Middle East is uncertain and rapidly evolving, keeping energy market participants on edge.
- The Middle East region, responsible for over one-third of global seaborne oil trade, is a major focal point of concern, and the IEA is prepared to act, including releasing emergency stocks and implementing demand restraint measures, in the event of a sudden oil supply shortage. Despite the initial risk premium priced in, oil prices have since stabilized.
The International Energy Agency (IEA) has warned that oil markets may remain volatile due to the Israel-Hamas conflict. While the conflict has not yet directly impacted oil supplies, the IEA noted a “sharp escalation in geopolitical risk” and expressed concerns that ongoing tensions in the Middle East could threaten regional energy production. The Middle East represents over one-third of global seaborne oil trade, raising concerns about potential disruptions. The IEA stated that it is closely monitoring oil markets and is prepared to act, including releasing emergency stocks and implementing demand restraint measures, in the event of an abrupt supply shortage. Despite the concerns, oil prices have stabilized after an initial risk premium was priced in following the conflict’s outbreak.
For full original article on CNBC, please click here: https://www.cnbc.com/2023/10/12/oil-iea-says-markets-to-remain-on-edge-as-israel-hamas-war-persists.html
