Why oil prices fell back last week – ZAWYA

Why oil prices fell back last week – ZAWYA

The price of oil has, for some time, lost its benchmark role for geopolitical tensions in the Middle East. It sees an increase in oil supply from non-OPEC countries of 2.1 million bpd for the same year.. Markets are looking at geopolitical tensions in the Middle East as event risk as long as markets are rather relaxed.. Last year saw little volatility in oil markets except for the aforementioned spikes in the wake of geopolitical events.. It is safe to say that geopolitics will matter less to markets as long as supply significantly outstrips demand - unless an event has a sustained impact.. As long as geopolitical tensions are not quantifiable and occur on an ad hoc basis, they will be treated as an event risk.. Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point-of-view.