Oil Risk Premium Wanes

Oil prices slumped by $10 per barrel in a month, from above $90 Brent in early April to the low $80s, as tensions in the Middle East subsided and prompted money managers to shift their focus on the upcoming OPEC+ decisions and the path to lower interest rates. In early April, the Iran-Israel standoff and the rising tensions in the most important region for oil supply led to a spike in prices to over $90 per barrel amid higher risk premium in the market. A month later, fears of escalation and potential disruption to oil supply have faded, and so…