As Brent wobbles, oil traders pile into bullish bets
USO•Brent is heading for a 19% weekly drop, while traders added about $2.04 billion in options to buy Brent futures at $110 to $170 a barrel and $1.88 billion in options to sell at $70 to $95.
1. Bullish bets build
Brent fell below $100 for the first time in a month and was heading for a 19% weekly drop. As prices fell nearly $10 on Wednesday, traders added about $2.04 billion in options to buy Brent futures expiring in November and December at $110 to $170 a barrel, compared with about $1.88 billion in options to sell at $70 to $95.
2. Market outlook uncertain
ING commodities strategists said the scale and speed of the oil market’s sell-off seemed overdone, while stressing that the outcome remained highly uncertain. They cited uncertainty over whether Trump would pursue renewed strikes, a deal, or continued pressure on Iran through a maritime blockade.
