for Geopolitical Risk
The oil price increase sparked by the recent attacks on Saudi oil tankers is concerning for the United States, because oil is the lifeblood of the American economy.
Oil prices are currently underpinned by unplanned supply outages, OPEC manipulation, geopolitical uncertainty, limited spare capacity, rising demand, and speculative buying.
Venezuelan intelligence arrested two employees of Chevron who balked at signing contracts with PDVSA. The move has broad implications and will likely lead to even more production losses.
A SAFE analysis shows that there were 1,480 terrorism incidents against oil and gas facilities worldwide between 2011 and 2016, a 387 percent increase from twenty years ago.
The geopolitical events of today are a perfect reminder of why the country must not come to an impasse over fuel efficiency standards.
Oil markets surprised this past year with higher-than-anticipated prices, & next year will likely bring even more unanticipated events and volatility. Here are some of the top market developments of the past year and key issues for 2018.
OPEC will attempt to manage perceptions in both the physical and financial markets—but given its track record, it will not likely produce stability and certainty, but instead ambiguity and volatility.