Victor Shum Quotes

The geo-political risk premium and how it fluctuates is a key driver in the price of oil. Since the time Saudi Arabia objected to Iran's call to cut output and promised to provide more oil, the risk premium has declined.

- Victor Shum

Tags

Political | Risk | Premium | Fluctuates | Driver |

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Short term events like this which are unpredictable can drive a high price floor for crude prices. That is why we are seeing pricing in the high 50s even though the market is well supplied. - Victor Shum

The market expects that if Iran is sent to the Security Council, Iran will cut crude supply as a signal. However, the cut is expected to be a short-term cut, not a long-term cut. - Victor Shum

The OPEC suggestion that they would not cut production targets has had a calming effect on the market. - Victor Shum