Gold Silver Reports (GSR) – Their bets that Brent crude futures will climb reached a new high as growing tensions across the Middle East are putting almost half of the world’s supply at risk. The escalation of strife in the region sent the key crude benchmark to its highest in more than three years, while volatility surged.
“Clearly, emotionally, people view markets as tighter because they are actually reacting so strongly to these tensions,” said Ashley Petersen, lead oil analyst at Stratas Advisors in New York. “There is money to be made here again” amid heightened volatility, she said.
After fears that a U.S.-China trade spat could hurt demand fizzled, heated geopolitical stress kept investors on their toes. U.S. President Donald Trump warned America was preparing to strike Syria, and top oil exporter Saudi Arabia intercepted ballistic missiles fired by Yemeni rebels. OPEC Secretary-General Mohammad Barkindo said he was concerned about the “geopolitical premium re-emerging in the price” of oil.
Read More: Crude Oil Rises Most in 2 Weeks as Concerns Over Trade War Ease
“It’s showing there is life in general in this sector that’s worth coming into,” Petersen said. “You combine that with the fact that, yes there is volatility, but also the outlook is generally bullish, it makes the sector more attractive for some long positioning and for some risk-taking.” – Neal Bhai Reports (NBR)
