Why Oil Markets Aren’t Reacting to Supply Disruptions and Geopolitical Risk

In the past, any suggestion of a conflict in the Middle East prompted oil prices to rise. But that was in the past. Now, the war between Israel and Hamas is spreading, tankers and container ships are leaving the Red Sea, and yet oil prices are where they were a month ago. Despite an actual supply disruption in the United States. This week saw crude oil production in North Dakota fall by between 650,000 bpd and 700,000 bpd, which is quite a substantial amount of daily output. This decline, however, has had no effect on international oil prices at…