Crude Oil is Underpriced, Energy Aspects Says

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Energy Aspects founder Amrita Sen argues that crude oil futures understate physical-market risks and that some crude prices could be closer to $150 per barrel. She attributes the disconnect to market complacency amid Middle East hostilities and Houthi attacks targeting Saudi energy and other infrastructure.

Oil futures prices are disconnected from reality on the ground in the Middle East and should be trading closer to $150 a barrel for some physical crude prices, Amrita Sen, founder and director of market intelligence at Energy Aspects, told CNBC on Friday. The market is surprisingly complacent against the intensity of the hostilities in the Middle East as the Iran-aligned Houthis target Saudi energy and other infrastructure, Sen said. “Futures prices are just struggling to price in what the true fundamentals are, in part because everything…