Goldman Sachs: The risk premium at the front end of the oil curve has declined

According to Odaily, Goldman Sachs analysts stated: “Since the announcement of a ceasefire between the US and Iran, the risk premium at the front end of the oil curve has declined, as the likelihood of a peace agreement being reached in the short term is believed to have increased.” Goldman Sachs noted that oil flows through the Strait of Hormuz have not increased, and US blockades could further tighten supply. However, this pressure has been partially alleviated because disruptions in crude oil production in the Middle East do not appear to be as severe as expected, thanks to greater than anticipated onshore and offshore storage capacity. (Golden Ten Data)