The seizure of Venezuelan oil resources by the U.S. signals a broader shift towards a ‘smash-and-grab’ diplomacy in a world of resource scarcity, that is likely to accelerate similar behaviour by other states. Brent crude’s price climbed as markets priced in a mix of supply disruption and geopolitical risk – now at $69.40/b. But Shell CEO Wael Sawan highlighted how little oil prices have moved, staying around $60-70/b, despite the huge increase of geopolitical risk and the use of sanctions. The market is far more stable than in the past, as regards political risk. Oil prices slid after the IEA
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