Oil’s Geopolitical Price

When it comes to the price of oil lately, one thing is for certain-it’s been volatile.

Bouncing off its recent lows at the $50 dollar mark, oil has since exploded to the upside, reaching and briefly surpassing the key technical level of $60 on Friday. Continued frigid weather, a U.S. oil field closure, recurring Nigerian violence and Iranian saber-rattling have all combined to push the price higher.


But while winter’s grip will soon be broken and the supply concerns in regard to the shutdown can be overcome, the geopolitical landscape is as unpredictable as ever, which has oil traders everywhere attempting to price in that risk. The result is much higher prices.

Chief among these risks is Iran. On Friday the country shook the markets when a top Iranian cleric boldly proclaimed the United States was within Iran’s “firing range.”

Energy and Capital