Because of this, there is concern of a potential disruption in gasoline supplies due to this switch-over.
The potential supply disruption risk premium has already been built into the price and because there really is no immediate threat to supply ... prices are correcting downwards.
Between now and when the U.N. Security Council actually takes up the issue there will be some saber-rattling, but in the near term traders know there won't be any disruption to supply from it.
The threat to supply disruption is keeping traders edgy.
Geo-politics is behind the surge in oil pricing... The Nigerian unrest has caused a disruption in supply.
Geopolitics is behind the surge in oil pricing... The Nigerian unrest has caused a disruption in supply.
The current Iranian developments, though they will not cause any immediate disruption to oil supply, have caused some anxiety on the part of traders.