Oil: expect a supply shock

“What happened to the geopolitical risk premium?” asks Peter Warburton of Halkin Services. Turmoil in Gaza, Russia provoking Kiev, and Islamists terrorising Iraq are all events you’d expect to send oil prices soaring. Yet following a jump to $115 a barrel in June, prices have fallen by more than 11% to a 14-month low around $102.

The tension has had no impact on oil production, especially in Iraq, where it has been confined to the north, not the oil-exporting south. Output in traditional trouble spots, notably Iran, Libya and Iraq, has actually picked up recently.

Meanwhile, a surge in US output [...]

MoneyWeek magazine

Latest issue:

Magazine cover
Don't be spooked by Putin

Take a punt on eastern Europe

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

More from MoneyWeek

FREE REPORT:
What you should really do with your money (2014 Edition)


How to buy and sell penny shares

A beginner's guide to investing in gold

How to invest in British fracking

Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.