Julius Baer says oil fundamentals point to lower prices
Norbert Rucker at Julius Baer says Middle East tensions around Hormuz are sustaining a risk premium in oil, keeping prices supported despite fundamentals pointing to lower prices.
The Middle East conflict, which has lifted oil prices back up to $95 in recent days, seems stuck in a phase where the tussle for control of Hormuz leads to recurring hostilities, nourishing the risk premium in oil prices, says Norbert Rucker, head of economics at Julius Baer. "While the conflict is…