What is offsetting the drop in crude prices following Obama's latest embarrassing backtracking from his "blow things up first, ask Congress later" peace track? According to some, it is this note from Goldman which suggests oil price pressure from an improving geopolitical picture will be offset by rising backwardation. Rising backwardation offsets a negative price view
Oil prices had a good run. But the brief bump we saw in prices several weeks ago is over. Prices have now returned to levels not seen in more than a year. Yesterday London-traded Brent crude futures fell more than 2% yesterday to $102, about where we were on July 1, 2013.
Kiev (AFP) - The United States expressed fury at Russia's "lies" over Ukraine after European powers urged a frayed ceasefire be respected, while a rare overnight calm was reported in the war zone on Wednesday.
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Last week, I came across by far the most bullish chart for 2015 oil prices that I have seen since the bottom fell out of the market. Interestingly, the chart came from one of the more credible voices in the business, Steven Kopits of Princeton Energy Advisors.
Over the past week a new geopolitical mystery emerged: an "unknown" party was launching airstrikes against Libya, which is already reeling in its latest political crisis where headlines such as this have become the norm:
Steen Jakobsen, chief economist and CIO at Saxo Bank, has a interesting article today on War & Markets I present below as a guest post.Steen says ...Prepare for less growth, less certainty and more geopolitical riskCrude oil price is simplest proxy for geopolitical riskWars reflect a world where growth is low and energy expensive “There are causes worth dying for, but none worth killing for” – Albert Camus