Opinion: The two key risks driving the oil price in 2018

The return of risk premium

clock • 4 min read

At the beginning of 2017, we predicted that strengthening fundamentals would drive the oil price to near $60 a barrel by the end of the year. While our expectations were met, the market proved reluctant to react.

It took the oil price until the end of June to react to the rapidly improving fundamentals and it took the stock market until the end of August to start its ascent. However, looming risks to the global oil supply indicate that oil equity prices are on a positive trajectory for some time to come.  Selftrade's ETF Select 100: Which funds topped the performance charts in December 2017? Oil markets are currently undersupplied, with inventories far lower than where they began 2017 and OPEC extending its cuts into this year. We are now entering 2018 in a far more balanced state than we e...

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