Rabobank analysts point out that oil markets started off 2020 with a bang as prices soared on the second trading day of the New Year upon reports of the US attack and killing of Iranian General Soleimani in Iraq.
Key Quotes
“In our view, Iraq poses the biggest supply risk to markets given the current dynamics at play.”
“The spike in oil volatility is leading to selling from risk parity funds and systematic strategies that dynamically rebalance their portfolios.”
“Unlike at the time of the Saudi oil-attack, “Managed Money” traders are now “long” crude oil and we suspect they will resume their buying as volatility settles back down.”
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