Mee-Ye push up the oil risk premium

As the United States re-imposed its blockade on Iran, Iran claimed that the Strait of Hormuz had been closed and crude oil futures had increased. In a report, Henry Hoffman, Joint Portfolio Manager, Catalyst Energy Investment Fund, stated that the market prematurely saw partial reopening as the end of the crisis. He noted that the buffer of stocks was much weaker than at the beginning of the conflict. The need to rebuild stockpiles, repair damaged facilities and convince shippers that the Strait is truly safe means that the risk premium on oil, finished oil and liquefied natural gas will be more durable than expected from the post-ceasefire market。