During IE Week, Ben Luckock joined Bloomberg TV’s “The Opening Trade” programme to discuss the key factors shaping the oil market today

Ben described an oil market caught between concerns over global economic growth and a highly volatile geopolitical landscape. He highlighted how sanctions on Russia, imposed after its invasion of Ukraine, have added complexity to global oil flows.

“The Russia-Ukraine war didn't significantly slow down Russian energy consumption around the globe. It just made the market very inefficient because vessels were traveling much farther than necessary. Much higher ton-miles were being expended, and more bunker fuel was being burned, but the oil was still being delivered. However, those two issues have now stabilised.”

“The two big unknowns are: how the US is going to deal with its trade issue with China, and how the US is going to handle Iran. I think the Iranian issue is the one we need to watch closely because we're back at the low end of the trading range for oil. It has been a USD70 to USD80 market for some time now. Increased pressure on Iran may push it into a corner, and that’s something we need to be cautious about.”