63853
The trade was a sign of the crescendo of negativity.
The trade was a sign of the crescendo of negativity.

Investors Raise Bets on WTI Price Fall

Investors Raise Bets on WTI Price Fall

It has come to this for the beleaguered oil market: a big bet that prices are about to sink to their lowest level in more than a year.
About $7 million worth of options changed hands in US markets on Friday that will pay off if West Texas Intermediate crude falls beneath $39 a barrel by mid-July, according to data compiled by Bloomberg.
WTI, which hovered around $46 Friday, has not traded below $39 since April 2016, though it’s been dropping like a stone in recent weeks. More than 14,000 August $39 put options changed hands, almost 20 times the number of contracts previously outstanding for the bearish option.
The trade was a sign of the “crescendo of negativity" that is washing over the oil market, said James Cordier, founder of investment firm Optionsellers.com in Tampa, Florida.
Prices have plunged about 13% in the last three weeks, amid fears that OPEC-led production cuts are not doing enough to stem a global supply glut.
For Friday’s bet to work, prices would have to match that drop in the next few weeks, during a time when summer driving typically pushes demand higher, Cordier said by telephone.
“That’s just a huge speculative bet that tells me that the fear is at its heights and we’ll probably see oil recover," he said. “It’s a hell of a lottery ticket that the market’s going to keep falling."

Short URL : https://goo.gl/7FR60c
  1. https://goo.gl/wtE4Sv
  • https://goo.gl/kktSLk
  • https://goo.gl/KDrr8w
  • https://goo.gl/ri593Y
  • https://goo.gl/NO5mNE

You can also read ...

Denmark Hesitating About Nord Stream 2 Over American Pressure
Last year, Denmark introduced a legislation that allows the...
Aramco Eyes Indian Energy Sector
Saudi Arabian state-owned oil company Saudi Aramco wants to be...
Brent and WTI benchmarks fell down to $74.25 and $68.42 per barrel respectively on June 25.
Oil prices fell on Monday as traders factored in an expected 1...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus