Energy Markets
Russell: Crude oil will be driven by geopolitics and mismatch in supply-demand over the long-term, not by crude oil itself.
Two long-term shifts will affect the global crude oil markets, including how cargoes are transported and priced. First, it is a question of supply and demand. The vast majority of growth in demand comes from Asia while the growth in supply comes primarily from Americas outside the United States. Second, energy markets are increasingly influenced by political factors. This increases the risk that large blocks of supply will be cut off from the demand centers. As Europe has seen in its decision to stop buying Russian oil after Moscow's invasion into Ukraine. The oil market will be forced to adapt...