So far, an energy crisis has been somewhat averted in Europe. But policy and political risk remain. Oil bulls shouldn’t have a hard time forecasting energy prices to rise, thanks in part to the EU.
Such policy risk, led by the price cap for Russian oil, “could trigger significant and abrupt changes of the broader market environment, which could impact the orderly functioning of markets, and ultimately financial stability,” a Bloomberg article stated on Jan. 22. The price cap (known as the market correction mechanism) goes into effect on Feb. 15.
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