Despite the ongoing conflicts in the Middle East, oil prices have remained relatively subdued.

So why aren't prices higher?

And how are geopolitical tensions affecting the landscape more broadly?

A bigger US oil sector gives us another buffer, another adjustment mechanism to deal with supply disruptions, for instance, out of the Middle East.

That said, I think that oil prices in the short term could still spike a lot if you were to see

geopolitical supply disruptions. I'm Allison Nathan and this is Goldman Sachs

exchanges. To help explain the supply and demand dynamics that are driving the oil market,

I'm sitting down with my colleague in Goldman Sachs research, Don Striven, who's head of oil research.

We'll discuss the factors driving oil and other commodity prices,

and look at how policy makers are securing energy sources amid rising geopolitical tensions.

Don, welcome back to the program.

Thanks, Allison.

It's great to be on.

So, Don, as I just said, the markets seem to have somewhat shrugged off the concern

that the conflict in the Middle East is going to lead to a big

disruption in energy supplies and ultimately big price spikes.

Why is the market so complacent here?

Yeah, so if you look at brand crude oil prices, they have been fluctuating in a very narrow

range roughly around $80 per barrel.

And I think there are really two reasons for that limited volatility.

Number one, the so-called geopolitical risk premium in all prices remains

remarkably modest despite the two ongoing wars in Russia and the Middle East.

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