Geopolitical risk premium in oil market eases slightly, says Goldman Sachs
Goldman Sachs reported that the geopolitical risk premium in the oil market has slightly decreased this week, following sharp increases in Brent crude implied volatility and call options implied volatility skew last week.
Oil prices steadied, with Brent crude futures trading at $77.72 per barrel, as traders balanced Middle East tensions with bearish demand expectations.
Goldman Sachs still sees a potential upside of $10-$20 per barrel for Brent in the event of disruptions to Iranian production, though prices could stabilize near current levels absent major disruptions.