JPMorgan analysts believe that current oil prices do not reflect the effects of geopolitical risks in the Red Sea region.
Despite the frequent attacks in the region, they consider that the potential threats associated with the escalation between the United States and Iran have not been adequately assessed.
Shipping disruptions are easily handled, and changing the route of tankers around the southern tip of Africa adds only two dollars to the price of a barrel of oil،
The Gulf countries are also heavily dependent on onshore pipelines, which contributes to the stability of oil supplies.
The Wall Street Journal followed this up with excerpts from other bank analysts that were as follows:
Caroline Payne, chief commodity strategist at the Bank of England, said that there has been no significant disruption in oil supplies, which explains the optimism in the oil market.
Capital Economics also notes that there have been no major interruptions in oil supplies.
Macquarie also said that the Houthi attacks are aimed only at provoking fear without causing significant damage.
Deutsche Bank also said that improving missile defenses in the region could reduce the likelihood of damage to oil production facilities.
On the other hand, Standard Chartered Bank expects a less optimistic effect, as it considers that there is an increased risk of a direct confrontation between the United States and Iran, which may affect oil prices and increase volatility.
