Still “a simmering” geopolitical fear bid in the global oil market

Oil prices remain at more than 3-week low as Iranian crude supply concerns ease

Tom Essaye, founder of the Sevens Report Research, said there is still “a simmering” geopolitical fear bid in the global oil market which is keeping futures above the $80-a-barrel level, and that fear bid will remain in the market until there is some “more formal” ceasefire agreed upon in the Middle East.

Outside geopolitics, higher-for-longer policy rates are a risk to demand down the road, but for now most economic data remains robust and supports the case for futures to sustain prices above $80 in the near term, Essaye said in a Tuesday client note.