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Oil posted its worst week since July as U.S.-Iran tensions eased and investors focused on rising U.S. inventories. New U.S. sanctions on Iran and a reported Russian naval incident gave brief support.
Weekly crude declines of more than 6% pushed prices back to pre-Soleimani strike levels.
Prices have returned to levels seen before the escalation, so the geopolitical risk premium has largely unwound. Renewed sanctions and naval incidents leave some potential for volatility in energy costs.
cnbc.comReutersJan 10, 2020After 255 past bearish geopolitics events, Crude Oil (WTI) moved a median -2.4% over 5 sessions (31% higher; middle half -7.0% to +1.7%), and -5.0% over 20.
After 250 past bearish geopolitics events, Crude Oil (Brent) moved a median -3.1% over 5 sessions (36% higher; middle half -7.9% to +1.6%), and -5.5% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
