The oil market continues to be supported by ongoing tensions in the Middle East. The lack of price action following recent escalation has been surprising but suggests there already is a large risk premium priced into the market. Even so, there is still plenty of risk facing the market. The risk of disruption to Middle Eastern supply grows While price action in the oil market has been somewhat surprising following Iran’s attack on Israel, the risk of tensions in the Middle East impacting oil supply is certainly growing. The lack of price strength following Iran’s recent attack is largely due to a large risk premium ... (full story)