Oil: Recent price action is associated with global macro flows – TDS
|Energy markets are not pricing in a significant rise in supply risk premia, TDS commodity strategist Daniel Ghali notes.
A marginal rise in energy supply risk premia
“Our analysis of the cross-section of commodities returns reveals that the rally in crude oil prices is largely consistent with that of the complex, uncovering only a marginal rise in energy supply risk premia.”
“This reinforces our view that recent price action is associated with global macro flows as opposed to idiosyncratic pricing in commodity markets, which ultimately create additional vulnerabilities for prices.”
“Still, momentum associated with geopolitical events may be exacerbated by algo flows in the coming sessions.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.