Abdulaziz bin Salman (centre), Saudi Arabia’s energy minister, speaks during a news conference on September 17. The weekend attacks on the kingdom eliminated about 5 per cent of global oil supply and raised the risk of more conflict in the region, propelling Brent crude prices to a record surge on Monday. Photo: Bloomberg
Nicholas Spiro
Opinion

Opinion

Macroscope by Nicholas Spiro

Muted market reaction to Saudi oil attacks underlines investors’ habit to underprice geopolitical risks

  • Markets have long struggled to assess and price political and geopolitical risks accurately, given our innate reluctance to prepare for worst-case scenarios
  • This explains, too, the reaction to a potentially disastrous no-deal Brexit

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Abdulaziz bin Salman (centre), Saudi Arabia’s energy minister, speaks during a news conference on September 17. The weekend attacks on the kingdom eliminated about 5 per cent of global oil supply and raised the risk of more conflict in the region, propelling Brent crude prices to a record surge on Monday. Photo: Bloomberg
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