US: Geopolitics is set to take centre stage – Danske Bank

Geopolitics is set to take centre stage amidst a light economic schedule, as US President Trump is due to reveal his stance on the Iranian nuclear deal at 20:00 CEST, points out the research team at Danske Bank. 

Key Quotes

“Worries over Iran sent WTI oil punching through USD70 a barrel for the first time since November 2014.”

“Robust demand and OPEC-curtailed supply have left the oil market tight and vulnerable to event shocks. Event risk revolves around Trump initiating sanctions on Iran, as the US waiver on sanctions is due to expire on the 12 May. Meanwhile, the Venezuelan economy continues to be beset by turmoil.”

“We see a tail risk of sanctions hitting Iranian oil supply or a Venezuelan meltdown, which could send Brent to USD80-85 per barrel.”