Real War Rattles Oil More Than Trade War or U.S. Crude Boom

Geopolitical tensions are affecting prices now and will lift crude higher if they persist, Fatih Birol, the executive director of the International Energy Agency, said in an interview on Thursday. Meanwhile, trade disputes such as the one between U.S. and China that’s hurt investor sentiment recently are not unusual and won’t have “a direct impact on oil markets for now,” he said on Bloomberg Television in New Delhi.

Crude has surged to levels last seen in 2014 as the risk of violent conflict grips the market and raises concerns over potential Middle East supply disruptions. Top OPEC producer Saudi Arabia on Wednesday intercepted a missile attack by Yemeni rebels, who are seen as being supported by fellow group member Iran. That was after U.S. President Donald Trump warned Russia to expect an American missile barrage toward its ally, Syria.

The escalating tensions have taken investor focus away from data that may otherwise have dragged prices down. An Energy Information Administration report Wednesday showed U.S. production climbed to another record last week, while nationwide inventories posted a surprise gain. Still, as of Thursday, oil is poised to post its biggest weekly advance since July 2017.
more at:  https://www.bloomberg.com/news/articles/2018-04-12/real-war-seen-roiling-oil-more-than-trade-war-or-u-s-crude-boom