What are the implications? The oil markets seem to have already discounted the geopolitical risk. Falling inventories don’t seem to have concerned the market either, although Ursa’s latest measurement showed that inventories finally increased at Ras Tanura and Yanbu.
Market intelligence provider Wood Mackenzie told the Wall Street Journal this week “In the past the Saudis have always been able to step up to the plate and meet what’s missing. This is a different situation because the country with the greatest spare capacity is the one hampered.” They added on Twitter “If there are any other outages, we are up a creek without a paddle, as they say.”
That heightened risk certainly isn’t reflected in the current price of oil.
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Author: Robert Rapier
Robert Rapier is a seasoned chemical engineer with three decades of international experience in the energy sector. He holds undergraduate degrees in chemistry and mathematics, and a master’s in chemical engineering. Robert has worked extensively in oil refining, production, synthetic fuels, biomass energy, and alcohol production, earning several patents along the way. As Editor-in-Chief of Shale Magazine and a prolific author for Investing Daily, he shares his expertise through various newsletters and his latest book, American Energy: A History of Power, Progress, and Change. Robert's insights have been featured on 60 Minutes, The History Channel, CNBC, and PBS, among others. His articles have appeared in top publications like the Wall Street Journal, Washington Post, and The Economist. For nearly a decade, he has covered the energy sector for Forbes.
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