After experiencing a period of unusual predictability and calm throughout 2017 and the first half of 2018, the global oil markets are once again becoming increasingly unstable and volatile. What I’ve always called the “fear premium” in crude prices has steadily risen in recent weeks thanks to the convergence of a series of international events, resulting in a 12 percent rise in crude prices in recent trading days.
Here are some of the reasons why the “fear premium” is making this comeback: