Bank of America says long oil is the best upside hedge into the US election

Writing just before the Monday pop higher for crude, Bank of America analysts says oil prices were reflecting any risk premium at all, "zero". Said it was trading cheap.

Ahead:

• oil the "best upside hedge for pre-US election geopolitical risk"
• there is "no Goldilocks in Geopolitics as global players not too focused on de-escalation"
• and that oil is the "normal asset winner on unanticipated conflict"

I posted yesterday on Goldman Sachs seeing supply tightness ahead:

• We expect that healthy consumers and solid summer demand for transportation and cooling will push the oil market in a sizable Q3 deficit of 1.3mb/d