Energy markets are not pricing in a significant increase in supply risk premiums, says Daniel GhaliTDS commodity strategist.
A marginal increase in energy supply risk premiums
“Our cross-sectional analysis of commodity returns reveals that the rally in crude oil prices is largely consistent with that of the complex, uncovering only a marginal increase in energy supply risk premia.”
“This reinforces our view that recent price action is associated with global macro flows rather than idiosyncratic pricing in commodity markets, which ultimately creates additional vulnerabilities for prices.”
“Still, momentum associated with geopolitical events may be exacerbated by algorithmic flows in the coming sessions.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
