Source: https://mochatrade.com/learn/glossary/oil-risk-premium

# Oil risk premium
URL: https://mochatrade.com/learn/glossary/oil-risk-premium
Last modified: 2026-10-17

The oil risk premium is the part of the oil price that pays for the chance the next barrel does not arrive, not for any barrel that is missing. It holds as long as the threat does, so [it can lift Brent while tankers are sailing normally](https://mochatrade.com/blog/crude-oil-war-and-slippery-slopes), and it leaves the price only when the flow can be verified. [Storage and the other three inputs](https://mochatrade.com/learn).

## Related terms

- Crude oil (WTI vs Brent): https://mochatrade.com/learn/glossary/crude-oil
- Contango and backwardation: https://mochatrade.com/learn/glossary/contango-and-backwardation
- Crack spread: https://mochatrade.com/learn/glossary/crack-spread
- Strait of Hormuz: https://mochatrade.com/learn/glossary/strait-of-hormuz
- Hedging: https://mochatrade.com/learn/glossary/hedging
- 52-week high and low: https://mochatrade.com/learn/glossary/52-week-high-and-low

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.