Oil Market Doesn’t Perceive Risk Right Now, Mizuho's Sankey Says

The video discusses the global oil demand forecast, highlighting a decrease in expected growth and the influence of the US dollar on oil prices. It examines the market's reaction to Iranian tanker seizures and the perceived lack of risk due to spare capacity. The discussion shifts to US shale supply, focusing on the strategies of major companies like Exxon and Chevron, and their impact on market dynamics.

What is the relationship between the strength of the dollar and oil prices?

• There is no correlation between the dollar and oil prices.

• A weak dollar leads to lower oil prices.

• A strong dollar leads to lower oil prices.

• A strong dollar leads to higher oil prices.

How does the market currently perceive the risk in oil due to Iranian tanker seizures?

• The market perceives a high risk and reacts strongly.

• The market perceives a moderate risk and reacts cautiously.

• The market perceives little to no risk and does not react.

• The market is uncertain and reacts unpredictably.

What is one of the main reasons US sanctions on Iran are considered effective?

• The US cannot get oil from other sources.

• Iran has a large spare capacity.

• There is not much demand for oil around the sanctions.

• There is a high demand for Iranian oil.

What strategy are Exxon and Chevron using to grow in the Permian Basin?

• They are relying on high oil prices to finance growth.

• They are reducing their debt to finance growth.

• They are outspending, including using debt, to finance growth.

• They are focusing on international markets instead of the Permian.

What is the potential impact on smaller companies in the Permian if oil prices drop to $40?

• Smaller companies will struggle due to lack of financial resources.

• Smaller companies will merge with larger ones.

• Smaller companies will thrive due to lower costs.

• Smaller companies will increase production to compete.