Market Has Mispriced Geopolitical Risk: StanChart

The video discusses the resilience of GCC countries to low oil prices, highlighting the difference between fiscal break-even prices and extraction costs. It speculates on potential outcomes of the next OPEC meeting, suggesting possible informal moves. The geopolitical risks in Turkey, particularly due to the Syrian conflict, are analyzed, emphasizing market mispricing. The video also explores challenges faced by Erdogan's leadership, including the Kurdish issue and increasing centralization of power.

What is the main difference between the fiscal break-even price and the actual cost of extracting oil?

• There is no difference between the two.

• The extraction cost is higher than the fiscal break-even price.

• The fiscal break-even price has risen globally, while extraction costs remain low in the GCC.

• The fiscal break-even price is always lower.

What is the expected outcome of the next OPEC meeting regarding oil output?

• A decision to stop oil production.

• Possible output cuts through informal diplomacy.

• No changes in output.

• A clear decision to increase output.

How has the market been mispricing geopolitical risks in Turkey?

• By considering only the economic factors.

• By focusing solely on the global environment.

• By ignoring the risks posed by Syria.

• By overestimating the risks.

What internal issue is Turkey trying to maneuver in relation to the Kurdish population?

• Expanding economic ties with Syria.

• Increasing military presence.

• Reducing oil imports.

• Gaining political support through peace processes.

What has been a growing concern for investors regarding Turkey's political landscape?

• Rising oil prices.

• Lack of economic growth.

• Increasing centralization of power under Erdogan.

• Decentralization of power.