| Increasing violence in Iraq, Opec’s second-largest oil producer, has spooked many markets, including oil. It has also elicited loud punditry about an emerging oil crisis, a need for the US to release strategic petroleum reserves and significantly higher prices throwing a monkey wrench into plans for global economic growth. But what are markets actually saying?
So far, the oil market’s reaction has been fairly benign. At most, there is a $5 premium in spot prices and perhaps a risk premium half that size in forward prices. Spot prices of Brent crude oil jumped 4.5 per cent (about $5 per barrel) on the fall of Mosul and the spreading territorial control of the Islamic State of Iraq and the Levant (known as Isis) over central Iraq...............................................Full Article: Source
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