Victor Shum Price Quotations

The potential supply disruption risk premium has already been built into the price and because there really is no immediate threat to supply ... prices are correcting downwards.

Short term events like this which are unpredictable can drive a high price floor for crude prices. That is why we are seeing pricing in the high 50s even though the market is well supplied.

A lot of the price rise is due to geopolitical concerns fuelling speculative interest.

This morning the price crept upwards so the market continues to be driven by the short-term geopolitical (pressures) primarily in Nigeria.

The geo-political risk premium and how it fluctuates is a key driver in the price of oil. Since the time Saudi Arabia objected to Iran's call to cut output and promised to provide more oil, the risk premium has declined.