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Aug 15, 2014
Geopolitical supply-risk for oil all but gone - TD Securities
FXStreet (Łódź) - TD Securities team of analysts remark that that the recent intensification of geopolitical events caused oil supply risk which provided additional support to crude prices.
Key quotes
"However, as each geopolitical event created supply risk and corresponding price support, some set of data or information would debunk supply concerns in due course."
"The Islamic State in Iraq insurgency is focused in the northern area of the country, far from the core producing and exporting region in the South."
"Libya has made significant progress to resume production and has opened all but one oil port."
"Western sanctions against Russia have been carefully crafted to not disrupt current crude oil supply, but rather hamper longer-term economic growth by restricting access to capital markets and equipment needed to grow the sector."
"Finally, conflict in Gaza and Israel does not significantly affect oil supply, but rather may increase demand to a sufficiently small degree."
"The general theme of geopolitical supply-risk and rapidly growing demand due to expanding/rebounding economies is starting to fade and investors have recently come to focus on the more apparent supply-demand looseness picture."
Key quotes
"However, as each geopolitical event created supply risk and corresponding price support, some set of data or information would debunk supply concerns in due course."
"The Islamic State in Iraq insurgency is focused in the northern area of the country, far from the core producing and exporting region in the South."
"Libya has made significant progress to resume production and has opened all but one oil port."
"Western sanctions against Russia have been carefully crafted to not disrupt current crude oil supply, but rather hamper longer-term economic growth by restricting access to capital markets and equipment needed to grow the sector."
"Finally, conflict in Gaza and Israel does not significantly affect oil supply, but rather may increase demand to a sufficiently small degree."
"The general theme of geopolitical supply-risk and rapidly growing demand due to expanding/rebounding economies is starting to fade and investors have recently come to focus on the more apparent supply-demand looseness picture."