CA - Middle East Tensions Ease For Energy As Russian Sanctions Hit Metals
2024-05-10 04:00:00 ET
Summary
- Commodity prices increased throughout April due to geopolitical tensions for energy and sanction concerns for metals.
- Oil’s future price largely depends on OPEC+ output policy.
- We expect natural gas and most metal prices to trend lower in the medium term.
By Warren Patterson & Ewa Manthey
The prospects for oil
Given geopolitical developments over the month, energy markets saw increased volatility throughout April. Retaliatory attacks by both Iran and Israel against one another raised fears of an escalation in tensions in the Middle East and the potential impact on oil supplies. However, those tensions appear to have eased even quicker than they escalated, leading to the risk premium in the oil market being fully eroded. A significant amount of spare OPEC capacity would have also helped ease concerns over potential supply disruptions due to any escalation....
Middle East Tensions Ease For Energy As Russian Sanctions Hit Metals