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Goldman Sachs: Risk Premium at the Front End of the Oil Curve Has Declined
Svmuu News Goldman Sachs analysts stated: "Since the U.S.-Iran ceasefire announcement, the risk premium at the front end of the oil curve has declined, as the perceived likelihood of a near-term peace agreement has increased." Goldman Sachs noted that oil flows through the Strait of Hormuz have not yet increased, and U.S. blockade measures could further tighten supply. However, this pressure has been somewhat alleviated because crude oil production disruptions in the Middle East appear less severe than anticipated, thanks to greater-than-expected storage capacity both on land and at sea. (Jin10)
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