Geopolitical risks are rising - but oil markets dismiss them

Too much focus on isolated events

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Oil supplies in the Middle East suffered due to myriad attacks in the region this summer
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Oil supplies in the Middle East suffered due to myriad attacks in the region this summer

Rarely does a month go by without a major geopolitical incident in the Middle East.

The region accounts for 34% of oil production and 48% of world proved reserves (BP Statistical Review of World Energy, June 2019). In short, it is an important oil region. On 12 May, four commercial ships were damaged off Fujairah's coast in the Gulf of Oman. Iran was widely blamed for these attacks. Oil price rise reaction: 'Likely to remain volatile' On 13 June, two oil tankers were attacked near the Strait of Hormuz while they transited the Gulf of Oman. On 4 July, UK forces seized an Iranian tanker on suspicion of breaking EU sanctions on Syria. On 19 July, Iran retali...

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