Oil market ignoring geopolitical risks; trade talks next big trigger

Crude oil had a roller coaster last month as demand concerns overpowered escalation of tensions in the Middle East. Attacks on Saudi Aramco facilities didn’t have much to fuel the rally as the country restored oil production levels. Multiple reports that Aramco’s production would be back online quickly helped push oil back to where they were prior to the attacks.

Markets started discounting the fact that geopolitical premium has expired, but there remains uncertainty as Iran is preparing for further attacks should the US not ease oil sanctions.

Demand worries are also back after Germany, Europe’s largest economy, experienced the sharpest contraction in manufacturing output since 2009.