Oil Market Increasingly Pricing in Diplomatic Deadlock Risk Premium - WSJ
Oil Market Increasingly Pricing in Diplomatic Deadlock Risk Premium - WSJ
Source: WSJ
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DW NOTE
The Strait of Hormuz has been shut for three weeks, global oil inventories are draining at 3 million barrels per day, and WTI is down 19% from its high. When the market prices a "diplomatic deadlock risk premium" into a commodity that's getting physically scarcer by the hour, the premium is too low.