The Risk Of Oil Price Shock Is Still High

Oct. 27, 2024 9:39 AM ETCrude Oil Futures (CL1:COM)USO, DBO, OILK, USL16 Comments
Damir Tokic profile picture
Damir Tokic
10.27K Followers
(7min)

Summary

  • The energy price shock is likely delayed until after the US election.
  • Specifically, the Israel-Iran war is likely to escalate after the election, which increases the risk of energy supply disruptions.
  • Thus, the price of oil could spike to over $100/barrel in the near term.

The chemical engineer working the late night shift at the petroleum oil refinery in an industrial estate. Chemical engineering, fuel and power generation, petrochemical factory industry concept

onuma Inthapong/E+ via Getty Images

Geopolitical de-escalation?

On October 3rd, I suggested that oil could hit $100/barrel before the election on November 5th, given the geopolitical escalation in the Middle East. The situation is unfolding and evolving, and this is an updated

This article was written by

Damir Tokic profile picture
10.27K Followers
Commodity Trading Adviser (CTA), member of National Futures Association. Professor of Finance, research on Global-macro issues. Editor-in-Chief, Journal of Corporate Accounting and Finance.

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