Why Brent isn’t reacting to escalating political risk

The effects of the war in Gaza have erupted across the Middle East, triggering a US-led military response in multiple location. Despite the heightening tension close to major oil production centres, the oil market has stayed unusually calm. Read our brief insight to see: • The role of OPEC production restraint in easing market qualms. • How much spare capacity does OPEC have if there is a disruption? • Do the supply and demand fundamentals justify the market’s muted reaction? • What’s the impact of oil tankers diverting from the Red Sea? Please see the slidepack in the download section of the report.