SaxoTV

Hansen: Watch as oil market volatility spreads

658 views
January 05, 2016 brent, brent crude, brent geo-political, brent oil, brent price, brent spread, brent wti, brent wti spread, commodities, commodities markets, commodities supply, commodity, commodity investing, commodity market, commodity markets, commodity outlook, commodity prices, commodity strategy, commodity trade, commodity trading, crude, crude oil, crude oil price, crude oil prices, crude price, crude prices, crude spread, crudeoil, geo political, geopolitical, geopolitical tensions, geopolitics, investment, iran, middle east, middle east oil, middle east tensions, oil, oil commodities, oil demand, oil drop, oil industry, oil inventories, oil market, oil markets, oil news, oil price, oil prices, oil production, oil range, oil refinery, oil spread, oil stocks, oil supplies, oil supply, oil trading, saudi, saudi arabia, saudi oil, saxo bank, saxo tv, tradingfloor.com, volatile, volatile market, volatility, wti, wti and oil, wti brent, wti brent spread, wti crude, wti crude oil, wti price, wti supply, wti us, wti vs brent, wticrude
24 hours into a new trading year and Saxo's Ole Hansen says volatility in oil markets is already high and will remain so. Rising geopolitical tensions in the Middle East combined with disappointing Chinese data have hit all markets including crude, he says.

Despite the war of words, both Saudi Arabia and Iran are desperate for revenues so Hansen doesn't believe either will turn off the oil taps. 

The premium WTI gained before New Year has now disappeared, he explains, because the geopolitical risk premium has been priced back into Brent. He also points to Wednesday's US inventory report which could see increased supply.

Ole believes that both the upside and downside potentials remain limited. But the one thing traders can be sure of is continued volatility.